How Does Whole Life Insurance Build Cash Value? 
A permanent life insurance policy is designed to last a lifetime . In order to face the increasing costs of insuring in the later years , the company accumulates money which it calls cash value . As the cash value accumulates it means that the company has a smaller increment of life insurance to purchase each year until the policy ultimately endows or the cash value equals the face amount . It is really a simple idea but it is all math ! 