What Is Cash Value Life Insurance?

Cash value life insurance is the most basic life insurance. In addition to providing pure life insurance, a cash value or investment value is also established in the policy, that is, after paying the insurance costs, the insurance company puts the rest of the premiums into an internal fund that pays interest. The value growth characteristics of this type of life insurance allow insurers to maintain premium value for their customers for life, which is the result of tax deferral. There are three main types of cash value life insurance: life insurance, variable life insurance and universal life insurance. ^[1]