Whole Life Insurance
How does whole life insurance cash value grow?
Whole life insurance cash value grows through: guaranteed interest (typically 3-4% per year), dividends (for participating policies), and paid-up additions. Cash value growth is tax-deferred. You can access cash value through policy loans or surrendering the policy.
Key Points
- Cash value grows through: guaranteed interest, dividends, and paid-up additions
- Guaranteed interest: typically 3-4% per year
- Dividends: not guaranteed but consistently paid by some mutual companies
- Tax-deferred growth
- Access cash value through policy loans or surrendering the policy