Question: How does a whole life insurance policy accumulate cash?

Brandon Selfors

Licensed Insurance Agent


A whole life insurance policy accumulates cash (called cash value) that becomes like a savings account. Whole life insurance also called permanent life insurance typically stays active until age 100+ unlike term life insurance which typically stays active for a set period of time (like 10, 20 years or more). As premiums are paid into the policy, a portion is “saved” which can build up cash value that can be used to borrowed against or cashed out if needed in retirement stages of life.

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*ATTN. SENIORS: Never cash out your whole life insurance policy without considering a life settlement first as these transaction can payout a significant amount more more than what your carrier is willing to pay. Thus increasing ones savings account from a whole life insurance policy.

A life settlement is a safe option of selling ones life insurance policy to another type of life insurance company called a “provider”. Get the advice from of licensed life settlement broker, who is an actual fiduciary to the client. Most would not sell their home without a realtor unless they knew what they were doing. Same is true for this type of transaction. A life insurance policy can be a seniors largest asset and should carefully consider every option.

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Brandon Selfors / CEO

Certified Life Settlement Broker

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