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Is there Cash Value in EVERY Life Insurance Policy?

In this video we'll go over Is there Cash Value in Every Life Insurance Policy? So you can better understand your life insurance options. 🚨🚨 Visit me directly at https://www.arrowfinalexpense.com/ 🚨🚨 This channel was created to provide viewers with content that will help them better understand life insurance. As a licensed Life Insurance Agent, I will go over the most important, essential facts and topics in these videos. Hello my Fellow Insurables I'm Kelli Arrowsmith with Arrow Final Expense and today we're going to go over does all life insurance have cash value so first things first what is cash value and how does it work now if you're new to my channel you'll get the best tips knowledge and honest information about life insurance and if you find this helpful please subscribe so certain life insurance policies have a component known as cash value every time you pay a premium a portion of it goes into the cash value and that cash value builds up now depending on the type of policy you have that cash value can build at either a fixed or a variable interest rate now in most instances cash value can either be borrowed from or withdrawn from the policy after a period of time now if you were to borrow against the policy but you died before you paid back the loan any outstanding loan amount would be deducted from the benefit that your beneficiary receives now instead if you were to just withdraw money out of the cash value then that would be deducted from the death benefit because withdrawals do not get paid back again it does usually take a few years in order for the cash value to build up enough so that you can borrow or withdraw from it now in some instances you may use it in order to pay the monthly premiums if you were to become ill or injured and you couldn't pay your monthly premiums this will ensure that the policy does not lapse here is something else you need to remember the cash value inside your life insurance policy is only available while you are living it is not included in the death benefit when you pass away the cash value inside your life insurance policy is essentially the amount of money you would get if you were to surrender your life insurance policy minus any fees unpaid loans and surrender charges now if you were to surrender your life insurance policy you are effectively canceling it and you no longer have life insurance coverage so real quick let's take a look at what type of policies do have cash value and those that do not now permanent life and Insurance such as whole life or universal life insurance both have cash value whereas typically term life insurance does not have cash value but that is the reason term insurance is so much more affordable than permanent life insurance any type of life insurance policy that has cash value is going to be more expensive than that that does not term life insurance is temporary and it only lasts for a set period of years and when your term life insurance policy ends you no longer have coverage since term insurance does not have cash value it pays a death benefit when you pass away and does nothing else permanent life insurance which is to last your entire lifetime comes into varieties there's whole life which has level payments a level death benefit and cannot be canceled due to age or health and then there is universal life universal life is different because the premiums and the death benefit can be adjusted but it also cannot be canceled due to age or health now whether you by term or permanent life insurance is really going to depend on your needs now obviously one has cash value and the other doesn't now most people buy term insurance when they're young because they need a lot of coverage at a better rate and they also only need it for a set period of time they're probably raising a family they have a mortgage and something along those lines whereas permanent life insurance is better as you get older and you need coverage to last the rest of your life now something to keep in mind even though term life insurance does not build cash value a lot in a lot of instances term can be converted to permanent life insurance and in that instance when you do convert the policy to permanent life insurance that policy would build cash value well there we have it that is a simple overview of which policies have cash value and which do not if you have any questions about today's topic other life insurance topics or you want me to go over a specific topic let me know down in the comments and if you want to continue to get the best tips knowledge and honest facts about life insurance please like And subscribe and I'll see you guys next time