Premiums are higher than term insurance
Jan 4, 2005
Contributor: Ray Smith
Premiums are higher than term insurance because these policies accrue a cash value, on a tax-deferred basis. The cash value is frequently related to the performance of the insurance company.
An insured can borrow against the cash value that the policy accumulates. It can also be used to pay premiums or a policy can be surrendered for its cash value at anytime.
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