How fast does cash value grow?

Slowly at first — most growth comes in later years. We set realistic expectations before you buy.

Is the cash value taxed?

Growth is generally tax-deferred, and loans are typically not taxed if the policy stays in force. Tax situations vary — consult a tax professional.

What happens to cash value when I die?

Depending on the policy, the death benefit is generally paid to your beneficiary; some policies pay the benefit plus cash value. We confirm the details per policy.

Life Insurance

Cash Value

“Cash value” refers to the savings component inside permanent life insurance policies like whole life and universal life. Over time, part of your premium builds a balance that grows tax-deferred.

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You may be able to access that value during your lifetime through loans or withdrawals — though doing so can reduce the death benefit if not repaid.

How it works

A portion of each premium funds the death benefit; another portion builds cash value. The balance grows over time and can be borrowed against or withdrawn, depending on the policy type and terms.

Who it's often for

People who want permanent coverage plus a tax-advantaged way to build value they can tap later — often as part of a broader financial plan.

Things to consider

Cash value builds slowly in the early years, and loans reduce the benefit until repaid. It's a long-term strategy, not a short-term savings account. We explain the math honestly.

Frequently asked

Explore other options

Term Life

Term life covers you for a set number of years at a lower cost. We explain how it works, who it fits, and what to watch for.

Whole Life

Whole life offers lifelong coverage and may build cash value over time. We explain the tradeoffs versus term.

Final Expense

Final expense is a smaller permanent policy designed to cover funeral, burial, and end-of-life costs. Simple to qualify for.

For Seniors

Life insurance options for seniors, including final expense and simplified-issue coverage. Honest guidance, no pressure.

For Families

Life insurance helps protect your family's income, home, and future. We help you find the right amount and type.

Life insurance products are subject to underwriting. Approval, premium, and benefits depend on age, health, and other factors.

Some permanent life insurance policies may build cash value. Policy loans may reduce the death benefit and create costs. This may not be right for everyone.