A cash value account is a feature specific to permanent life insurance policies that accrue value over the duration of the policy. Part of the premium payments made by the policyholder is allocated to this account, where it is invested and grows on a tax-deferred basis.
A cash value account is a feature specific to permanent life insurance policies that accrue value over the duration of the policy. Part of the premium payments made by the policyholder is allocated to this account, where it is invested and grows on a tax-deferred basis.
The investments are typically managed by the insurance company and can be invested in a variety of instruments, depending on the policy's structure.
Over time, the cash value account can accumulate significant funds, which the policyholder may use as a loan collateral, withdraw for personal use, or allow to grow as a financial cushion.
A cash value account is a feature specific to permanent life insurance policies that accrue value over the duration of the policy. Part of the premium payments made by the policyholder is allocated to this account, where it is invested and grows on a tax-deferred basis.
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