| Whole life insurance policies offer this nifty little perk | | | | early, the policy owner no longer has that whole life |
| called "cash value." A whole life insurance policy will | | | | insurance policy. |
| accumulate a cash value over time, and the cash is | | | | The second way a whole life insurance policy owner |
| tax-deferred, which means you will not have to pay | | | | can obtain his cash value is by borrowing against the |
| taxes on the cash value your whole life insurance | | | | cash value. This is definitely a benefit in times of |
| policy accumulates. Many people enjoy the cash value | | | | financial stress, but unless the policy holder pays back |
| perk that whole life insurance policies offer; however, it | | | | the amount borrowed, the death benefit is reduced. So, |
| must be noted that you cannot both reap the rewards | | | | should the policy holder die before he pays back what |
| of your cash value and have your beneficiary receive | | | | was borrowed against the cash value, the amount of |
| your death benefits. | | | | death benefits the beneficiary will receive won't be as |
| This probably sounds a bit confusing, so let's break it | | | | much as it would be if there was no money borrowed |
| down. Whole life insurance policy owners only get the | | | | against the cash value. |
| cash value that their policy has accumulated in one of | | | | To sum up, a whole life insurance policy holder can not |
| two ways. The first way the policy owner can obtain | | | | have all of his cash value and still have a death benefit |
| his cash value is by surrendering his whole life | | | | for his beneficiary, nor can a policy holder borrow |
| insurance policy early, in which case the cash value | | | | money against the cash value and still allow his |
| would be available to him while he is still alive. Once the | | | | beneficiary to get the full death benefits if the money |
| policy owner surrenders his whole life insurance policy | | | | borrowed is never paid back. |