The cash reserve that is required to keep a premium level is what generates the guaranteed cash value of an insurance policy.
Term insurance policies are usually of shorter duration and consequently the reserve is created and used up so there is no cash value available to policyholders. Some policies of longer duration have a cash value or some other non-forfeiture option like reduced paid up or extended coverage. This varies by company and you you need to check your policy for details.
An independent life insurance broker, representing several companies, can help you find the right policy at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
By the definitions of term life insurance and cash value or permanent life insurance, term life insurance is temporary and does not accumulate any cash value. Only the permanent types of life insurance such as whole life, universal life, indexed universal life and variable life insurance have any cash value typically after five years or so.
President, Lane Independent Agency, Southern California
Unlike Whole or Permanent Life, Term Life does NOT accumulate equity. It is pure life insurance. It protects you against death, so your beneficiaries will be paid upon your death. Permanent life will grow value against which you can borrow, or retire upon. Term does not allow this. In exchange, the premiums start out substantially lower, but only for the fixed term of years. Thank you. GARY LANE.
That is a great question! There is a reason why cheaper things are cheaper. In the case of life insurance, term policies are much cheaper than whole life policies are. The reason? Term policies have zero frills. They rarely have to pay out, as the terms usually expire before you do; and they have nothing extra in the payment but insurance costs, so there is no accumulating cash value either. Term policies can be a good option in some cases, please be sure that you speak with an agent to make sure that it is right for your needs. Thanks for asking!
.JPG){kind=avatar}
Term insurance policies are usually of shorter duration and consequently the reserve is created and used up so there is no cash value available to policyholders. Some policies of longer duration have a cash value or some other non-forfeiture option like reduced paid up or extended coverage. This varies by company and you you need to check your policy for details.
An independent life insurance broker, representing several companies, can help you find the right policy at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.