Take out a loan for your immediate needs. However, any money borrowed will have to be paid back with interest to maintain the full death benefit. Add your remaining savings to your retirement fund. If you no longer need your policy, sell it in exchange for a life settlement in lump sum. Cash Value Life Insurance vs.

Term Life Insurance There are two main types of life insurance policies: term life insurance and cash value life insurance. While both options are meant to provide financial stability upon your death, their main difference is the added savings component. Before pursuing an insurance option, consider your financial needs and the desired amount of coverage. Term Life Insurance Term life insurance — also referred to as pure insurance — offers coverage for a designated period of time set between 1 to 30 years. When the contract ends, you will have to renew your policy. If a policyholder dies within the policy period, the beneficiary receives the full death benefit.

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If the policyholder does not die within that period, the beneficiary receives nothing. Look through the choices to determine what option will work for obtaining the policy value information. Video of the Day Step 2 Select the "Manage Your Account" tab in order to login and gain access article source personal account information. The MetLife eService allows policy holders to access all of their account information including policy value, bill payments, and a complete overview of the entire life insurance policy.

If the policy holder chooses to use the proceeds from the investment pool to make premium payments, the cash value will not grow as quickly. Exploring Death Benefits The purpose of a life insurance policy is to provide the policy holder's beneficiary with the policy's value upon the policy holder's death. This "death benefits" payment forms one of the bases for calculating the policy's cash value. When a policy holder initially purchases a policy, the death benefits amount is the policy's face value. This, not surprisingly, leads to criticism and warnings about cash value-style products. Universal life insurance products will provide a detailed breakdown of policy expenses. This report accompanies the life insurance illustration. Whole life insurance, on the other hand, does not provide details on policy costs.

What You Need to Know

The product operates in relative secrecy and never discloses the actual fees the insurance company deducts from the policy. Types of Policies Life insurance options for cash value-style products come in two basic forms; whole life insurance and universal life insurance. Both types of life insurance operate under the same basic principles of any life insurance policy.

They both offer life insurance coverage, have a premium payment you must make for a certain length of time, and they will both pay death benefit proceeds to your named beneficiary upon death. Additionally, both policy types provide a cash value account and they are both considered permanent life insurance policies, which will last for your entire lifetime.

A whole life insurance policy will offer several guarantees. These include guaranteed premiums, guaranteed death benefit, and guaranteed accumulated cash value. A whole life policy will tend to have a much more rigid premium payment in exchange for these guarantees.

Whole life policies do not have surrender charges, so the cash value of your policy will also be the cash surrender value of your policy. Whole life policies tend to come from mutual insurance companies. These are insurance companies owned by their policyholders. Don't Throw Away Your Cash Value Many policyholders do not make the most of the cash value in their permanent life policies, especially if they no longer need the death benefit. When the policyholder dies, their beneficiaries receive the death benefit, in lieu of any remaining cash value.

But if there is no need to pass the death benefit on to beneficiaries any longer, the policyholder can access the accumulated cash value while still alive, either by surrendering the policy entirely or by making smaller withdrawals or policy loans. Note that taking cash out how do i find the cash value of my life insurance policy a policy will also reduce the death benefit. Taking a policy loan is a viable option if the policyholder needs cash at the moment but would like to keep the death benefit for the future, repaying the loan amount over time. Below, we show you some options you have with your life insurance policy cash value, including six popular strategies to help you make the most of that cash value in your permanent life insurance.

Cash Value Life Insurance vs. Term Life Insurance

Permanent life insurance offers both a death benefit and a cash-value amount but on death, beneficiaries only receive the death benefit.

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NEVER BUY CASH VALUE LIFE INSURANCE! how do i find the cash value of my life insurance policy do i find the cash value of my life insurance policy - congratulate Fact-Checked Annuity.

These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times. Our expert reviewers review our articles and recommend changes to ensure we how is atque vale upholding our high standards for accuracy and professionalism.

Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments. What Is Cash Value? The cash value, or surrender value, is a savings component included in some life insurance policies that can accumulate cash value from premium payments. With an added cash value option, your life insurance policy can help contribute to a retirement nest egg or rainy day fund for immediate access to cash. It can also help pay future premium payments on your policy. If you decide you no longer need your life insurance policy, you can sell your policy in exchange for your cash value, or a lump sum payment.

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