There are two amounts of money that are important to know about when you have a whole life insurance policy. These are the cash value that the policy and the death benefit amount have amassed. These can also affect each other in some cases. Understanding how each works is important when you have this type of life insurance policy. Call us today at Outdoor Insurance Services in Houston, TX to get started with life insurance.

Your Policy’s Cash Value

When you pay your premiums for your whole life policy, the insurance company makes a profit through investing in those payments. A small percentage of that profit is made available to policyholders in the form of a cash value of their policies. It takes a few years for this value to start to build up, but when it does, it can add up to a considerable amount that you can borrow someday if you need to. Many people feel peace of mind knowing that this amount is available to them just in case. 

The Death Benefit

The death benefit is the set amount that is specified when you get your policy that will be given to your beneficiaries. It’s a good idea to know how much your death benefit is so that you know how well your loved ones are protected. If you borrowed any portion of your policy’s cash value, that loan must be repaid. The amount of money still owed on the loan is deducted from your death benefit until it’s paid back. 

Get Whole Life Insurance 

If you’re interested in a whole-life policy, we can help. Contact us at Outdoor Insurance Services in Houston, TX, to learn more and get started with a policy.