Life goes on. How Cash Value Builds in a Life Insurance Policy

Accumulation Slows Over Time When you have cash-value life insurance, you generally pay a Over time, the amount allotted to cash value decreases
As you are 65 years old now, the cost of insuring your life is much higher Variable life policies, on the other hand, can correspond more closely to the level of risk you might assume when investing in the stock market

Generally, this cash value can grow quickly in the early years of the policy.

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In the early years of the policy, a higher percentage of your premium goes toward the cash value
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With whole life policies, you're generally taking the least risk since your cash value accumulation is guaranteed
How Cash Value Builds in a Life Insurance Policy
Then in later years, the cash value accumulation slows as you grow older and more of the premium is applied to the cost of insurance It's important to understand how cash value accumulation and risk correlate so you can choose a policy that fits your
The cash value grows or falls based on how well these subaccounts perform Each type of policy carries a different level of risk

In the early years of your policy, a larger portion of your premium is invested and allocated to the cash value account.

How Cash Value Builds in a Life Insurance Policy
The rest of the death benefit the policy will pay will come from the cash value
Life Goes On
Life Goes On