Cash-Value Life Insurance Plan

Cash-value life insurance plans, such as whole life or universal life insurance, offer both a death benefit and a savings component. Part of the premium pays for life insurance coverage, while the rest accumulates as cash value, which grows tax-deferred over time. Policyholders can access the cash value through loans or withdrawals, providing liquidity while maintaining coverage.

These plans are attractive because they offer the dual benefit of protection and savings. However, they tend to have higher fees compared to term life insurance or other investment vehicles. Cash-value life insurance is best suited for individuals who need life insurance and want to build savings in a tax-advantaged account.