How Does Cash Value in a Life Insurance Policy Really Work

| May 20, 2016

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When you own cash value life insurance, your premium payments are allocated three ways. First, a portion of each premium pays for the actual insurance costs. Like term insurance, a specific cost is associated with the policy's death benefit, based on your age, health, and other underwriting criteria. Second, a portion pays for the insurance company's operating costs and profits. The remainder goes toward the policy's cash value.

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Gallagher Bassett

Gallagher Bassett is the world’s premier provider of risk and claims management services. In a world where businesses and lives are more globally connected than ever, in a world where the pace of change is ever-accelerating, we stand ready to help organizations and people rise above the challenges of today. And to unlock their best possible tomorrows. The sooner, the better.

OTHER ARTICLES

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Does Business Insurance Cover Coronavirus Losses?

Article | March 31, 2020

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Social media intelligence for insurance?

Article | April 21, 2020

In the financial services industry, reliance on big data has been increasing at a global level. The usage is not limited to marketing purposes alone but extends to fraud and risk prevention. Customer demand for personalised products is responsible for this shift. The future of insurance is also being shaped differently due to this. The current lengthy questionnaires won’t be needed at all. Just the data collected will help to accurately predict risk and create policies customised to the person’s needs.

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Spotlight

Gallagher Bassett

Gallagher Bassett is the world’s premier provider of risk and claims management services. In a world where businesses and lives are more globally connected than ever, in a world where the pace of change is ever-accelerating, we stand ready to help organizations and people rise above the challenges of today. And to unlock their best possible tomorrows. The sooner, the better.

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