---
title: "What Is Cash Value? Definition | Epic Life Glossary"
description: "Cash value is the savings part of a permanent life insurance policy. It grows over time at a rate set by the policy and can be borrowed against or..."
url: https://epicline.preview.multisites.ai/glossary/cash-value
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Policy mechanics

# Cash Value

Cash value is the savings part of a permanent life insurance policy. It grows over time at a rate set by the policy and can be borrowed against or withdrawn, subject to the contract terms.

## Why it matters

Whole life, universal life, and indexed universal life build cash value. Term life does not. Early on, growth is slow because costs and commissions come first. You can borrow against it, but unpaid loans reduce the death benefit. Withdrawals and surrenders can have tax effects. Cash value is not the same as the death benefit, and growth in some policies is not guaranteed.

Source: [investor.gov](https://www.investor.gov/introduction-investing/investing-basics/glossary/cash-value-life-insurance)

[Read next, for familiesWhole life insurance: how cash value works, what it costs, and who it fits](https://epicline.preview.multisites.ai/life-insurance/whole-life)

## Where we use this term

-   [Burial insurance vs life insurance vs pre-need funeral plans: what is the difference?](https://epicline.preview.multisites.ai/guides/burial-insurance-vs-life-insurance-vs-preneed)
-   [How much does final expense insurance cost, and what sets the price?](https://epicline.preview.multisites.ai/guides/final-expense-insurance-cost)
-   [Fixed vs fixed index annuity: how do they work and who do they fit?](https://epicline.preview.multisites.ai/guides/fixed-vs-fixed-index-annuity)
-   [Indexed universal life (IUL) explained: caps, floors, costs, and risks](https://epicline.preview.multisites.ai/guides/iul-explained)
-   [Can you still get life insurance over 70? Options that still work](https://epicline.preview.multisites.ai/guides/life-insurance-over-70)

## Start your climb.

Tell us where you are today and request a call about licensing, training and the calls.

[Apply to join](https://epicline.preview.multisites.ai/apply)

Shopping for coverage instead? [Get a quote](https://epicline.preview.multisites.ai/get-a-quote)