Tradition whole life insurance combines a death benefit with an accumulation element, often referred to as the policy’s cash value.
The cash value will generally increase each year the policy stays in force. The policy’s payable death benefit is the face amount, which remains consistent so long as premiums are paid
- The owner has no control over how the cash value portion of the policy is invested
- The premium is usually set when the policy is issued and may be level or graduated, depending on the insurer and product
- Premiums will be required at a regular intervals during the entire time the life insurance policy is active to keep it in force
- Failure to pay a premium could result in a load against the policy
- Loans and withdrawals