How does cash value life insurance work?

Question

How does cash value life insurance work?

Answer 1

depends on the type of cash value policy you're talking about.  They come in many flavors...

Answer 2

Some companies will pay interest and other will pay dividends and interst.   These policies will gain cash value that can down the road be used to help reduce the cost of the policy.  Basically insurance get more expensive every year older you get.  The companies will allow you build cash value to keep a policy in force and keep it permanent.  Be wary of taking loans against this money as it is just that a loan.  You will have to pay back as well as interest.  If the cash value goes negative the policy will collapse and you will no longer have a policy.  They are a little more complicated than term policies but they will be there for the long run.  Talk to an insurance agent to understand them inside and out and how it will affect you.  

Answer 3

Google "Whole life insurance."