What do it mean when u have a cash value policy?

Question

What do it mean when u have a cash value policy?

Answer 1

Cash value is the lump-sum amount the insurance company will pay to you if you cancel your policy. At age 100, your cash value is equal to the death benefit the policy would pay. At that point your policy has “matured.” The growth in cash value is slow but steady. As the cash value of a whole life policy grows, it offers you  financial options. For example, the cash value can be used as collateral for a loan. It also can be withdrawn by in the form of a loan that the insured makes to himself or herself. This is particularly helpful when the insured needs cash but has poor credit or has maxed out other assets, such as home equity.

Answer 2

It means your premiums pay for both insurance as well as an "investment" account.

I prefer to keep my money less mingled.  My insurance is just insurance and my investments are just investments.

Answer 3

It means you got screwed.  They sold you insurance and in vestment in one with very high fees.  Get out and buy level term.