How do you know the cash value of life insurance

When most people think about buying a life insurance policy, they are usually planning for the financial expenses that their loved ones will have after their death. however, certain types of life insurance policies have other benefits for you and your loved ones.

The cash value of a life insurance policy is one of those benefits. With the right kind of insurance policy, you can create a “savings” account that you can tap into for unexpected expenses or, in some cases, to pay premiums later in life.

Reading: How do you know the cash value of life insurance

In this guide, you’ll find out if your life insurance policy might have a cash value. You’ll also learn how to find out your cash value balance.

Does my policy have a cash value?

Simply put, all non-term life insurance policies have a cash value. how that value is calculated: it varies according to the type of policy:

  • Term Life Insurance: The most basic life insurance policy is like “renting” a policy: it doesn’t accumulate any cash value unless you convert it. undefined
  • Whole Life Insurance: Traditional or permanent life insurance pays benefits when you die, and builds cash value when you pay an additional amount over the cost of insurance. You generally pay more into the savings account at the beginning of the policy, so your cash value grows more slowly the longer you’ve had the policy.
  • Universal Life Insurance: A universal life insurance policy offers flexible premium payments with the ability to increase your monthly payment to grow your policy’s “savings account” option. These policies accrue interest based on current market rates (in a down market, you’d be losing money).
  • Variable Life Insurance: Variable life products pay benefits when you die, but death benefits are tied to the performance of the investment options you choose.
  • 4 ways to find out the cash value of the policy

    If you have a universal, variable, or whole life insurance policy, you’ll want to know how to find the cash value of your policy. These four ways should help you find the answers you need.

    call your insurance company or agent

    The cash value of your life insurance policy is considered sensitive information, so a phone call may be the fastest way to get the balance.

    See also: Our top 10 tips to get cheap car insurance | heycar

    You may need some identifying information such as your social security number, date of birth, or your insurance policy number.

    Log in to your insurance company’s web portal

    If you’ve already set up your account online, you may be able to get your life insurance cash value by logging into a web portal.

    This will be the fastest way to find your cash value. You can also manage your policy and cash value options online without speaking to an agent.

    use the insurance company’s online contact form

    While you may not be able to get your life insurance cash value by submitting a contact form, you can request a phone call to avoid waiting.

    Alternatively, if you have your insurance agent’s email address, you can request that they call you to review your cash value balance and options.

    4. download the mobile application of your insurance company

    This may not be an option for everyone, but some insurance companies have mobile apps that can make it simple to get your cash value.

    See also: Does Dental Insurance Cover Braces? – Forbes Health

    You may have limited options to manage your account on a mobile app, but it’s a quick way to find your balance and account information.

    what can you do with the cash value of your life insurance policy?

    Each life insurance policy will have different terms, but generally have some standard options for using your accumulated cash value.

    The most common ways to use the cash value of your life insurance are:

    • Use it as collateral for a loan: Your insurance company may offer secured loan options with lower rates than an unsecured personal loan.
    • roll it over into other financial tools: You can use the cash value to diversify your investment portfolio based on your financial goals (although, if you’re over 74 or your health has worsened, you may be able to sell your life insurance policy for more than its cash value)
    • Pay your monthly policy premiums: An effective way to lower your monthly expenses while keeping your policy is to pay your premiums with it.
    • The best option for you depends on your goals. but use cash value because it’s only a living policyholder benefit: the insurance company takes your cash value when you die. your beneficiary will only receive the death benefit.

      See also: How much does a prescription of adderall cost without insurance

      See also: How much does a prescription of adderall cost without insurance