How Cash Value Life Insurance Builds Wealth Over Time

When you hear “life insurance,” most people think about what it does after you're gone. But cash value life insurance offers a living benefit too — and that’s what sets it apart. Over time, your policy can build real, usable value. Here's how it works.

Each time you pay your premium, a portion goes toward your death benefit (the money paid to your beneficiaries), and another portion goes into a savings component — called cash value. This cash value grows tax-deferred, meaning you won’t pay taxes on its growth unless you withdraw more than you’ve paid in.

Think of it like a savings account inside your policy that earns steady interest. Some policies, like whole life, grow at a fixed rate. Others, like universal life, have variable rates based on the market or credited interest. Either way, the longer you keep the policy active, the more value it can build.

So what can you do with this cash value? Later on, you can borrow against it, use it to pay premiums, or even withdraw funds for things like education, retirement, or emergencies. It’s a flexible financial tool that works quietly in the background — growing while you go about life.

The key takeaway? Cash value life insurance is more than just protection — it’s a long-term financial asset. Want to see what that could look like for you or your family?

Let’s talk. Call Chris Jacobson at Vision Insurance Group in Yankton today for a free, no-pressure consultation.

📞 (605) 653-3877 | Vision Insurance Group LLC, Yankton, SD