When most people think of purchasing a life insurance policy, they’re usually planning for financial expenses their loved ones will have after they die. Certain types of life insurance policies have other benefits for you and your loved ones, though.
The cash value of a life insurance policy is one of those benefits. With the right type of insurance policy, you can build a “savings” account you can leverage for unexpected expenses, or in some cases, to pay for the premiums later in life.
In this guide, you’ll find out if your life insurance policy might be holding cash value. You’ll also learn how to find out your cash value balance.
The short of it is that all life insurance policies that are not term life have cash value. How that value is calculated — varies between types of policies:
If you have a universal, variable, or whole life insurance policy, you’ll want to know how to find the cash value of your policy. These four ways should help you find the answers you need.
The cash value on your life insurance policy is considered sensitive information, so a phone call can be the fastest way to get the balance.
You might need some identifying information like your social security number, date of birth, or your insurance policy number.
If you’ve already set up your online account, you might be able to get your life insurance cash value by logging into a web portal.
This will be the fastest way to find your cash value. You might also be able to manage your policy and cash value options online without talking to an agent.
While you likely won’t be able to get your life insurance cash value by submitting a contact form, you can request a phone call to avoid sitting on hold.
Alternatively, if you have your insurance agent’s email address, you can request a phone call from them to go over your cash value balance and options.
This probably won’t be an option for everyone, but some insurance companies have mobile apps that can make it simple to get your cash value.
You might have limited options for managing your account on a mobile app, but it’s a quick way to find your balance and account information.
Every life insurance policy will have different terms, but you generally have a few standard options for using your accumulated cash value.
The most common ways to use your life insurance cash value are:
The best option for you depends on your goals. but use the cash value because it is only a benefit for the living policyholder - the insurance company takes your cash value when you die. Your beneficiary will only receive the death benefit.