What Happens To The Cash Value In My Life Insurance Policy When I Die?

Juneau is the capital of the U.S. state of Alaska and downtown Juneau sits at sea level, with tides averaging 16 feet, below steep mountains about 3,500 to 4,000 feet high.

Jason moved to Juneau Alaska, 8 months ago and called me to ask me about his life insurance cash value. “What happens to the cash value in my life insurance policy when I die?”

The cash value in a life insurance policy does not belong to the owner of the policy. Most insurance companies will use the cash value as an asset which they will use to pay the claim.

The cash value of your life insurance policy cannot be given to you if you are dead and therefore it is no longer your cash value.

But if you should relieved the insurance company has the obligation of paying the claim, after you die. But by canceling the policy or lapsing the policy, the cash value of the policy would be given to you before you die under the terms of the policy’s “non-forfeiture” clause.

Category: Juneau