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Life Insurance Glossary: Terms To Know

Cash Value

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Cash value is a savings feature that accumulates money over time.

Basically, if your policy has a cash value provision, what you contribute in premiums pays more than the cost of the insurance. The insurance company invests and accumulates that difference, which you may be able to borrow against at a pre-set rate of interest.

Cash values are generally found in permanent type policies. They are rare in group policies.

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