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2011-05-15 01:56:02
2011-05-15 01:56:02

Term life insurance does not accumulate cash value as such; whole life insurance, in one of its various forms, does.

A type of term insurance that does have the potential of returning money to the policyholder is return of premium (ROP) term insurance policy. With a ROP term policy, all premiums paid are returned to the policy owner at the end of the term selected (e.g. 15, 20, or 30 years). Cash value does not build in the customary sense, but depending upon the precise variety of the policy, something more than the actual premiums paid may be repaid.

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No, generally speaking, no term life insurance policies have cash value.


No you canNOT cash in term life insurance. It has no additional value beyond the death benefit.


If you have a permanent type of policy such as whole life or universal life there may be some cash value to recover.If it is a term insurance policy there is no cash value so there is nothing to "cash out".


Can you sell a 20 year term life insurance policy which has no cash value


No. Term Life insurance does not have any cash value and expires at the end of the term, usually age 70.You can borrow against a permanent or whole life insurance policy however, but whatever amount is borrowed may reduce its cash value.


Term insurance may or may not have cash value at some point. It has no value when it expires. For example, If a person bought term insurance at 30 which would expire at 70, it could have some cash value when that person was between the ages of 40 and 60. Term life starts losing cash value when people start dying. It becomes worthless when it expires. If you want to use your term life insurance policy, you will need to die before it expires.


Cash value insurance can be "whole life insurance" or "universal life insurance". There are few differences on how the funds are invested and if dividends can be paid that would increase the cash value, but both types of permanent life insurance can accumulate cash value. There is also a type of term insurance that has a "return of premium" feature that will return all premiums back at the end of the term. This type of term life policy is not actually accumulating cash value because you only get back the premiums you paid.


Not all insurance policies have cash value. Term life has no cash value. Whole life does have cash value. You will have to talk to your insurance company and tell them what you want. If you have a whole life policy with cash value, then withdrawing that cash is essentially like taking money out of a bank account; very simple.



No, because Term Life insurance policy has NO cash value.


Term life insurance does not build a cash value. It simply covers the insured person for a certain term or period of time.


Term insurance does not gather cash value. Surrender value tangentially correlates with cash value. Therefore, term insurance does not have a surrender value. If payment of premium stops, once the grace period expires, so does coverage.


Yes, if your life insurance policy has accumulated cash value. Not all life insurance policies will accumulate cash value: for example, term life insurance policies will not accumulate any cash value. Whole Life and Universal life policies can accumulate cash value and the policy owner can take loans in the limit of the cash value (some companies limit loans to 70 - 80% of the cash value).


There are two different types of life insurance policies: Term life insurance and cash-value life insurance. Term life insurance covers the owner of a set period of time, while cash-value policies can be used to build up cash value as an investment. Before signing on the dotted line, speak to a a representative who can guide you through the fine print.


Google the types of life insurance first. You need to learn a little about life insurance. The terms you are using and spelling are weird. Most people use cash value insurance to describe a type of life insurance.I do not really understand what you mean but, from my experience, I can only guess that by life insurance you mean term life insurance. If that is the case, then, in most situations, term life insurance has lower premiums than cash value life insurance (whole life, universal life...). Be well! mcdlife.com


No. Only whole life insurance policies (sometimes called "permanent insurance") accumulate cash value. Policy loans are generally available from the accrued cash value. Since term insurance does not gather cash value, policy loans are unavailable.


Decreasing term life insurance does not usually have any cash value. Decreasing term life insurance is life insurance coverage in which the face amount of a term life insurance policy declines by a certain specified amount over a specific number of years. For example, the initial face amount of coverage of a $200,000 decreasing term life insurance policy decreases by $20,000 each year, until after 10 years the face value of the policy equals zero. The premium does not decrease over the term of the policy.


There is no cash surrender value since the policy pays only on death. Source: http://www.my-life-insured.com/term-vs-whole.htm


A life insurance policy may have cash value if it is a "whole life insurance policy". This is a kind of life insurance, distinguished from "term" life insurance, that accumulates cash value for the period that it is in force and premiums are paid. Each premium paid goes to pay the cost of "indemnity" (the death benefit), the administrative costs incurred by the insurer, with all or a portion of the remainder going into the cash value. The cash value element of the policy is SOMEWHAT like a savings account within the policy. It grows slowly at first but faster as the policy matures. When a sufficient amount of cash value has accumulated, policy loans from the cash value are usually allowed per the terms of the policy. The loans bear interest at a rate provided for by the policy. Term life insurance does not accumulate cash value.


No. Surrender charges only apply when surrendering a life insurance policy which includes cash value accumulation, and even then only during the surrender charge period. Term life insurance policies have no cash value and can be canceled at any time by simply not paying additional premiums.


The difference between whole and life term insurance is that a term policy is life insurance only whereas the whole insurance combines a term policy and a investment component so one can build cash value and borrow against it.


Term insurance does not build any cash value until it is converted into a type of permanent product that does - whole life, indexed universal life, current assumption, variable universal life.


If your policy has a cash value associated with it you can get money for surrendering the policy. Term Life has no cash value, but a whole life or universal life policy may have a cash value in it. That depends on what type of policy it is, how long it has been in force, and assuming the payments have been made.


If your life insurance policy has cash value, you can borrow from the cash value inside. If you have a term policy with an accelerated death benefit rider then you may be able to borrow against the death benefit if you have a terminal illness.


Some types of life insurance develop cash value; these are called whole life policies. Term insurance has no cash value. So it depends upon the kind of life insurance you have, and it may also depend upon how long you have been paying premiums.



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