What Is The Cash Value Of Life Insurance? 
When an insurance company agrees to pay a death benefit whenever it occurs , it is called a permanent policy . In order to meet that obligation the company must reserve funds to offset the rapidly increasing cost of insurance in the later years of life . These reserves can be held in directed funds or in guaranteed funds . The guaranteed funds are known as cash value and appear in the policy itself . It is the amount that the company will give you if you surrender the policy . There are other options . 