Is cash value on life insurance insured?

The cash value that develops in a whole life insurance policy is not "insured" in the sense that it is not guaranteed to accumulate at a rate greater than the minimum rate set forth in the contract.

However, insurance policies that are issued by authorized (licensed) insurers may be considered to be "insured" in another sense. If the insurer encounters financial problems that require placement of the insurer into a rehabilitation or liquidation process by a state regulator, the involvement of the state insurance guaranty association may be triggered to ensure that claims are paid. The guaranty associations are creatures of state law, such that the issue of cash value would be determined according to the governing statutory law.