Which term refers to the account that holds the policy's cash value?

Which term refers to the account that holds the policy's cash value?

• A. Death benefit
• B. Living benefit
• C. Loan value
• D. Cash account

Answer: (D)

The key idea is that money built up inside a life insurance policy is held in a specific internal account that tracks the policy’s cash value. This is called the cash account. It’s separate from the death benefit, which is the payout at the insured’s death, and from the loan value, which is simply how much you can borrow against that cash value. The cash account is the designation for the place where those accumulated funds reside, grow with credited interest or dividends, and can be accessed via loans or withdrawals.

The key idea is that money built up inside a life insurance policy is held in a specific internal account that tracks the policy’s cash value. This is called the cash account. It’s separate from the death benefit, which is the payout at the insured’s death, and from the loan value, which is simply how much you can borrow against that cash value. The cash account is the designation for the place where those accumulated funds reside, grow with credited interest or dividends, and can be accessed via loans or withdrawals.