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Jayson Lowe explains that a life insurance policy's cash value isn't money sitting inside the contract. It's the net present value of future death benefits. Premiums you pay become the insurer's funds, like a deposit that's no longer yours.
Jayson Lowe explains that a life insurance policy's cash value isn't money sitting inside the contract. It's the net present value of future death benefits. Premiums you pay become the insurer's funds, like a deposit that's no longer yours.
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.
