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Cash Value Allocation

Cash value allocation is a term used in the context of certain life insurance policies, where the policyholder can designate how the cash value portion of their premium payments is invested by the insurance company. This feature is common in variable life insurance policies, which combine a death benefit with an investment component.

What is Cash Value Allocation?

Cash value allocation is a term used in the context of certain life insurance policies, where the policyholder can designate how the cash value portion of their premium payments is invested by the insurance company. This feature is common in variable life insurance policies, which combine a death benefit with an investment component.

Policyholders have the option to choose from a range of investment options provided by the insurance company, such as stocks, bonds, money market funds, or a mix of these, to allocate their cash value.

Their selections can impact the potential growth of the cash value, reflecting the performance of the underlying investments.

Cash value allocation is a term used in the context of certain life insurance policies, where the policyholder can designate how the cash value portion of their premium payments is invested by the insurance company. This feature is common in variable life insurance policies, which combine a death benefit with an investment component.

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