What is a benefit of having a cash value life insurance policy?

Having a cash value life insurance policy provides the significant benefit of serving as an asset that policyholders can borrow against. This feature is one of the key distinctions of cash value policies, which include whole life and universal life insurance. The cash value accumulates over time, providing a savings component alongside the death benefit. Borrowing against the cash value allows policyholders to access funds for various needs, such as emergencies, education expenses, or even starting a business, all while keeping the death benefit intact.

This ability to leverage the cash value for loans adds a layer of financial flexibility that traditional term life insurance policies do not offer, as term policies typically provide only a death benefit without any cash accumulation. Ultimately, this makes cash value life insurance appealing to those looking for both life insurance protection and savings opportunities.