What Exactly is CASH VALUE in Your Life Insurance Policy? скачать в хорошем качестве

What Exactly is CASH VALUE in Your Life Insurance Policy?

In this video we'll go over What Exactly is the CASH VALUE in your Life Insurance Policy? So you can better understand your life insurance options. 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 a licensed life insurance agent with Arrow Final Expense in this video we'll go over what is cash value and life insurance and how does it work and stay tuned till the end when I give you your cash value options if you're new to my channel you'll get the best tips knowledge and honest information about life insurance please subscribe so first and foremost in order for a life insurance policy to have cash value it has to be permanent life insurance such as whole life or universal life and I say this because term insurance which is temporary does not have cash value so cash value is a portion of your life insurance policy that earns interest and can be borrowed from or withdrawn from while you are still alive and I will mention that it typically takes between two to five years for that cash value to build up before you can use it so you can take out a loan or borrow from the cash value in your policy in which case you would need to repay that loan so if the life insurance company will add interest to any loan balance and any unpaid loans will be deducted from the death benefit some other cases you may simply make a withdrawal from your policy's cash value and the simple difference between a withdrawal and a loan is that a loan gets repaid and a withdrawal does not and just as with any unpaid loans if you do withdraw from your cash value it'll be deducted from the policy's death benefit so a friend of mine named Jeremy that I worked with right out of high school his mom Peggy had taken out life insurance when my friend Jeremy and his sister were little kids and eventually she was Raising Jeremy and his sister alone she was a single mom and she needed a new roof on her house so she borrowed against her life insurance policy and was able to get the roof replaced so when Peggy did pass away my friend Jeremy and his sister only got a portion of the life insurance policy because you know either she hadn't paid the loan back or she had just simply withdrawn the money in order to replace her roof now in some cases you may become ill or unable to work therefore you're not able to pay your life insurance premiums you can access the cash value in your policy to pay your premiums so that your policy does not lapse if you do withdrawal all of the cash value in your policy it will cancel your policy or what is known as that will surrender your policy which means you no longer have life insurance so if you do surrender your policy you will get the amount of cash value that is built up in the policy minus any surrender fees and minus any uh loans that have not been paid back or any outstanding debt that may be on the policy the difference between cash value and the surrender value is cash value is the amount that's saved in the policy whereas the surrender value is the amount you will get if you cancel or Surrender your policy minus any fees or outstanding debt that may be on the policy outstanding debt could be unpaid premiums a loan that has not been paid back or any withdrawals you've made from your cash value all right so let me go over real quick the four ways you can access your policies cash value number one make a withdrawal number two take out a loan number three surrender the policy and pull out all the cash value minus any surrender fees and any outstanding debt number four if you're unable to pay your premiums use the cash value in your policy okay there you have it that is a simple overview of how cash value in a life insurance policy works thanks for watching till the end if you want to get the best tips knowledge and honest information about life insurance please like And subscribe and I'll see you guys next time.