What Are Liquid Resources In A Life Insurance Contract?

  1. 4330 POINTS
    Jerry Vanderzanden, CLU, ChFC
    Co-Founder, Coastal Financial Partners Group, California
    Permanent life insurance or cash value life insurance has liquidity through the cash surrender value of the policy. If you "liquidate" your life insurance policy, the insurance company will give you the cash surrender value of the policy. In the first few years, the policy may have no value if canceled but, over time, the cash surrender value can grow.
    Answered on April 30, 2013
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  2. 0 POINTS
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    David RacichPRO
    Fountain Hills, Arizona
    Assuming you mean lifetime income you can’t outlive: single premium immediate annuities with the option to distribute regular payments for the life of the annuitant or deferred annuities that are annuitized for the life of the annuitant can be construed as a living annuity.
      
    Answered on June 28, 2013
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  3. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Permanent cash value life insurance may have accumulating cash values based on the contract's crediting method less any policy expenses and/or fees. Keep in mind that these policies have surrender charges in the early years that may restrict access to the policy's cash values. There are also policy loan charges for borrowing cash values from the policy.
    Answered on August 4, 2013
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  4. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Liquid resources in a life insurance policy is another name for the cash value in a permanent policy. The face amount of a policy is not liquid because the insured person must pass away in order for the death benefit to be paid. However, cash values can be borrowed from or surrendered.
    Answered on September 5, 2013
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