Cash Value and Its Uses in Permanent Life Insurance

If you choose permanent life insurance, the cash value can be a powerful financial tool:

• Borrowing Against Cash Value: After it accumulates, you can borrow from the cash value at low interest rates. This loan doesn’t have to be repaid but will reduce the death benefit if unpaid.
• Withdrawals: You can withdraw a portion of the cash value. Withdrawals generally lower the death benefit.
• Surrendering the Policy: If you no longer want the policy, you can cancel it for the cash surrender value, which is the cash value minus fees.