What term refers to the permanent life insurance accumulation of cash value?

What term refers to the permanent life insurance accumulation of cash value?

• A. Solvency
• B. Cash value
• C. Estate
• D. Illustrations

Answer: (B)

The concept here is the cash value inside permanent life insurance. This is the portion of a permanent policy that builds up over time as premiums exceed the cost of insurance, and it grows within the policy—usually on a tax-deferred basis—and can be accessed through loans or withdrawals. The term that describes this accumulation is cash value. Solvency is about an insurer’s ability to pay claims, not the policy’s savings inside; an estate is the total assets and debts left behind; illustrations are projections of policy performance, not the actual cash growth.

The concept here is the cash value inside permanent life insurance. This is the portion of a permanent policy that builds up over time as premiums exceed the cost of insurance, and it grows within the policy—usually on a tax-deferred basis—and can be accessed through loans or withdrawals. The term that describes this accumulation is cash value. Solvency is about an insurer’s ability to pay claims, not the policy’s savings inside; an estate is the total assets and debts left behind; illustrations are projections of policy performance, not the actual cash growth.