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Wealth

Cash Value Concepts

How cash value accumulates and can be accessed over time.

5 min read

The basics of cash value

A portion of premiums in permanent life policies (whole life, IUL, universal life) builds cash value - a living asset you own. It grows tax-deferred and can be accessed via policy loans, often tax-free, with no early-withdrawal penalty.

Common strategies

Supplemental retirement income, college funding, business opportunities, real estate down payments, and emergency liquidity without disrupting your market investments during a down year.

Common questions

Do I pay taxes on loans?

Policy loans are generally not taxable while the policy remains in force. If a policy lapses with an outstanding loan, the gain becomes taxable.

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