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Policy Types

Permanent life insurance cash value advantages

Permanent life insurance provides many benefits. In addition to protecting your loved ones upon your death, it also provides financial living benefits you can use as you see fit.

The benefits of having a permanent life insurance policy are many. Whether it’s whole or universal life, your policy will continue to provide coverage for as long as you live, as long as premium payments are maintained. Moreover, there is the potential to build cash value over time, providing you with benefits that you can use while you’re still alive.

While you can use the cash value in your policy for anything you like, this article looks at three not-so-common ways to use the cash value that may have accumulated in your whole or universal life policy over the years. *

College expenses

Financial aid and scholarships will only go so far, and may not be enough to cover the additional costs associated with higher education such as room and board, transportation, books, and lab fees. Any cash value in your policy could be used for these and other educational expenses.

Getting a new business off the ground

For some, it's the American dream, right? Unfortunately, starting a new business venture often requires having the readily available cash to cover startup costs. Unfortunately, many lending institutions aren't as eager to lend money to businesses that aren't well-established. The cash value in your policy may be an easier way to help fund startup costs without having to ask friends and family, or getting turned down by a bank.

Time off to care for someone you love

If you had to take time off from work to care for a loved one, would you have enough sick or vacation time to keep your paychecks coming? For example, you may need an extended amount of time to be with an aging parent or sick child. The cash value in your life insurance policy can be a way to keep the bills paid during a difficult time.                                                                    

These are just three ways that you can use the cash value in your permanent life insurance policy. Be sure to speak with your licensed insurance agent or insurance company representative in order to evaluate the implications of accessing cash from your policy. 


*Accessing a policy's cash value through loans or partial surrenders will reduce both death benefit and cash value, can contribute to policy lapse, and may result in a tax liability if the policy terminates during the lifetime of the insured.



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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective or its subsidiaries.

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