Death Benefits FAQs

Do beneficiaries receive the cash value of a whole life insurance policy?

The cash value of a whole life insurance policy is a living benefit. The unused cash value in a policy typically goes to the insurance company when the policyholder dies, not to a beneficiary. However, there are ways to use the cash value of a policy to benefit the policyholder’s heirs.

If there is a large cash value in a whole life insurance policy that likely won’t be used by the policyholder in their lifetime, they can purchase paid-up additions, which increase the death benefit amount, or transfer the cash value to an annuity or other investment vehicle that will benefit a beneficiary. For help on how to utilize the cash value of your whole life insurance policy, schedule a free consultation with a Wealth Strategist.

What is the death benefit of a life insurance policy?

The death benefit of a life insurance policy is the amount of money that will be paid out to the beneficiary when the covered individual dies.