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Cash value account

    0.06 sec.

Cash value account. If you have a permanent life insurance policy, part of each premium you pay goes into a tax-deferred account called the cash value account.

You can borrow against the money that accumulates in this account, though any outstanding balance at the time of your death reduces the death benefit your beneficiary receives.

If you cancel or surrender your policy, or if you stop paying the premiums, you are entitled to receive a portion of your cash value account. That amount is your cash surrender value.



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If the cash value account goes over a specific amount, the death benefit will increase.
Well, the reason this can be done is that the monthly premiums are not paying for the insurance coverage; the cost of the insurance is deducted from the savings portion, or the cash value account, of the policy.
helps employees see how different levels of contributions to their cash value account will grow over time.
 
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