How Does Life Insurance With Cash Value Work? 
The reason people buy life insurance is to provide a benefit to someone that they love . For many these reasons last a lifetime . Those people buy permanent insurance . While there are a variety of forms used a permanent policy is designed to provide a level death benefit in exchange for a level premium . Because the term of the policy is indefinite the company must charge more than for a policy providing coverage for a distinct period of time . The company then develops reserves to meet their future guarantees . These reserves are published in the policy as cash value . This means that if you have such a policy and wish to receive the stated cash value , the company will exchange the cash value for a release from their promise to pay a death claim . 