What is the cash value of a life insurance policy? This is a life insurance question many people have when comparing cheap life insurance quotes online without a medical exam. People are generally aware that when a person with a life insurance policy dies, there is a benefit paid to the beneficiary. For many people the death benefit goes to their spouse, children or grandchildren. This is one reason life insurance for seniors is popular right now.
What some people don’t realize is that an affordable life insurance plan can earn cash value during the term of the life insurance plan. When this happens you can take part of the cash value of that cheap life insurance policy as a loan or withdrawal. Not only that, you may earn interest or gain investment growth from these cash value plans. This makes cash value life insurance plans very appealing to those who are interested in making sure their family is cared for after they die.
It is important to remember that when asking the question, what is the cash value of a life insurance policy, you need to know what kind of life insurance plans qualify and which do not.
Basically there are four types of cash value life insurance policies available. They would include Universal Life Insurance, Whole Life Insurance, Variable Life Insurance and Variable Universal Life Insurance. Please note, Term Life Insurance policies do not qualify.
It’s worth noting that sometimes these cash value policies can be confusing so some wealth management professionals will encourage people to look elsewhere when doing their personal financial planning. In other words, determining the cash value of a life insurance policy can be tricky and many people opt for other investment opportunities.
For most people, purchasing a cheap life insurance policy is to provide a death benefit for their families. Many don’t worry about answering the question, what is the cash value of a life insurance policy.
Having said that, there are still people who will choose a cash value life insurance policy. It’s best to speak with a licensed life insurance agent and talk about your specific situation. We have trained people standing by to answer and questions you may have about cash value life insurance or any other cheap life insurance questions for that matter.
It’s worth noting, we do offer many no exam life insurance plans, but you should still plan on answering a few medical questions based on your history. It’s important to be honest to ensure you get the best policy to fit your needs.