By: Steve Savant

Steve Savant — Mon, 11 Nov 2013 21:44:31 +0000

Video Transcript:

What is cash value life insurance? Cash value life insurance can either be in participating whole life, it can be in current assumption universal life, it can be in index universal life, or variably universal life; those are the 4 cash value products. We always have to pay the policy expense loads first. Once those are paid, we can take the crediting from that, whether its interest rate, dividend, or whatever it is, we credit that into the policy cash values and they accumulate. During the accumulation, it's tax-deferred. When the money comes out, providing that the policy is kept enforced for the policy insured's life, those proceeds, withdraws to basis or policy loans to gain, can come out tax-free.

New answer on: What Is Cash Value Life Insurance?

By: Steve Savant