Cash Value is not cash balance

26 Jun 2026 · 1 min

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In this brief video, Jayson Lowe clarifies that a life‑insurance policy’s “cash value” is not a cash balance held inside the contract but rather the net present value of the future death‑benefit payments. He emphasizes that premiums paid become the insurer’s funds, likening the arrangement to an on‑demand bank deposit that is no longer the depositor’s money. Lowe stresses the importance of precise terminology, warns against the misconception that money grows inside the policy, and invites viewers to learn how to become their own banker via his website learnwithjay.com.

Chapters

If you have a policy where, you know, you've got a death benefit, you have the net present value of the future payment of that death benefit, which is in fact the cash value. That's why words have meaning. The life insurance company aptly named it cash value, not cash balance. There's no money growing inside the policy. I can't emphasize that enough. When you pay premium to the life insurance company, that is not your money anymore. It's no different than what you said, Ash. When you leave money at the corner bank and it's on deposit, that is an on-demand deposit. It's not your money anymore. Want to find out more about how you can become your own banker? Click the link below or head over to learnwithjay.com. That's learnwithjay.com.