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Getting Started
-Life Insurance Policy
-Life Insurance Benefits
-Best Insurance Policy
-Life Insurance Companies
-Life Insurance Quotes
Life Insurance Types
-Types of Insurance
-Term Life Insurance
-Supplemental Life Insurance
-Cash Value Insurance
-Endowment Insurance
-Family Life Insurance
-Whole Life Insurance
-Group Term Life Insurance
-Variable Universal Life Insurance
-Premium Life Insurance
-Joint Life Insurance
-Accidental Death Insurance
-Viatical Life Settlement
Insurance Tips
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-Insurance Tax Benefits
-Insurance Buying Tips
-Top Insurance Companies
Useful Articles
-Universal Life Insurance
-Life Insurance Coverage
-Term & Whole life insurance
-Life Insurance Leads
-Life Insurance Settlement
Recommended Sites
-Universal Life Insurance
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Cash Value

Life insurance policies are often assigned a cash value. The cash value is an amount that the policy holder can use in loans taken out against the life insurance policy. This is one way that life insurance can benefit the policy holder while they are still living.

One caution about borrowing against the cash value of the life insurance policy is that taking cash out against your life insurance can cause the surrender value of the policy to be reduced, should you die before repaying the loan. Also, your policy is in danger of falling into lapse, which is a situation where there is not value in the policy should you need to cash it in.

Borrowing against the cash value can be valuable in cases where funds are immediately necessary. However, caution should be used not to think of your life insurance as a line of credit. This puts your life insurance investment at risk.

More Glossary Terms Explained here

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