Paid Up Life Insurance Policy Cash Value at Life

Paid Up Life Insurance Policy Cash Value. In general, whole life insurance policies require consistent, fixed premium payments for as. Should you no longer be able to make the premium payments you may choose to do one of three things.

The whole life policies build up a cash value that isn’t taxed as the worth builds up. For example, you may pay $2,000 per year for 20 years and have an aggregate cash value of $30,000 in a life insurance policy. Most whole life products have a paid up additions (pua) feature, but they can all work a little differently so it's important to note that one company's approach could vary substantially from others.

Family Protection with Whole Life Insurance Bolton

When you’re paid up — which means you have enough cash value to cover your life insurance premium payments — you can terminate. The paid up additions feature of a whole life insurance policy is one of the most powerful components with respect to cash value accumulation. Cash value lets you tap into the policy while you’re still alive. It is the accumulation of funds that remains after your premiums pay for policy fees and expenses, including the cost of insurance.