How Does Life Insurance With Cash Value Work? 
Most cash value life insurance policies are designed to be permanent ; you can keep them your whole life if it makes sense . You can keep the policy in force until you die , and your beneficiaries are paid the death benefit which is typically tax free . Money accumulates inside the contract and earns tax deferred interest . You can borrow money against the accumulated cash value . Or you can cancel the policy are receive the cash value . There may be tax implications on policy cancellations . 