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A life insurance policy with cash value may be considered an investment. With some types of policies, a portion of the premiums are put into a cash savings account, earning interest with potential tax savings.1 Aflac offers whole life insurance with cash value that can offer lifelong coverage. Read on to learn what cash value life insurance is, some types of policies that offer cash value, and ways to access these funds.
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Life insurance with cash value is a type of permanent policy that can build funds over time through a growth component, in addition to providing a death benefit to beneficiaries when you pass away. With some insurers, the cash value of the life insurance policy grows separately in a tax-deferred account.1 Aflac utilizes a different route, so it depends on your preference. You can access the cash value during your lifetime through loans, withdrawals, or by using it to pay premiums, which can offer added flexibility to help meet financial needs.
Below are a few types of life insurance policies that often have cash value components:
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Get StartedOne of the major appeals to a cash value life insurance plan is the ability to access the money while you are living.1 Here are some ways accessible cash value can be used:
Some life insurance plans allow you to tap into the cash value of the account to pay for the premiums.1 This can be particularly helpful if new and unexpected expenses arise in other parts of one’s life. However, this may impact the value of the death benefit over time, so we advise you to consider your options.
Some life insurance plans allow you to access money by taking out a loan against the cash value of your plan. Outstanding loan amounts may reduce the death benefits in the event of the policyholder’s death before the full repayment of the loan, so we advise you to speak with a financial professional beforehand.1
Some insurance companies will allow you to withdraw money from your policy’s cash value savings account. We recommend you do not take out more money than what you have paid into the account so far because doing so may cause the policy terminate.1
To access the cash value of your plan, you may have to surrender part of your life insurance policy. Depending on the company and plan you choose, you may be able to withdraw money and only surrender part of the plan. However, getting your cash surrender value can also decrease the value of the death benefit.2
Cash value life insurance offers many advantages that can make this type of policy worthwhile, including:
Life insurance with cash value is permanent coverage, meaning it is intended to last your entire life. You can enjoy added peace of mind knowing your loved ones will receive the death benefit, regardless of when you pass away.
With cash value life insurance, you can use the funds from the cash value component while you’re still alive. Once you’ve built up enough cash value, you can enjoy flexible access when needed.
Although cash value life insurance premiums are typically higher than term life insurance premiums, the cost for coverage may still fit your budget.
No matter what type of life insurance policy you need, it's important to compare quotes and policies before making a decision. This way, you can ensure you're getting the coverage that's best for you and your family.
Having a plan in place can help protect your loved ones from the unforeseen difficulties that may arise if a main source of income is lost.
There are many ways that one can start planning, including factoring in life insurance for retirement.
Having a plan in place can help protect your loved ones from the unforeseen difficulties that may arise if a main source of income is lost.
There are many ways that one can start planning, including factoring in life insurance for retirement.
1 Investopedia - Understanding Cash Value in Life Insurance: Definition and Example. Updated September 19, 2025. https://www.investopedia.com/terms/c/cash-value-life-insurance.asp. Accessed January 27, 2026.
2 Nerdwallet - Cash Value Life Insurance: Is It Right for You? Updated February 20, 2026. https://www.nerdwallet.com/insurance/life/learn/cash-value-life-insurance. Accessed February 23, 2026.
3 Nerdwallet - What Is Variable Life Insurance, and How Does It Work? Updated June 29, 2025. https://www.nerdwallet.com/insurance/life/learn/variable-life-insurance#how-does-the-cash-value-work. Accessed January 27, 2026.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.
Aflac life plans – A68000 series: Term Life Policies: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68200, A68300 & A68400. In New York, Policies NY68200, NY68300 and NY68400. Whole Life Policies: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368100. In Delaware, Policy A68100. In New York, Policy NYR68100. B60000 series: In Arkansas, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Not available in Delaware. Q60000 series/Whole: In Arkansas, Delaware & Oregon Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Pennsylvania, Policy Q60100MPA and in Texas, Policy Q60100MTX. Not available in Virginia. Q60000 series/Term: In Arkansas, Idaho, Oklahoma, Oregon & Texas, Policy ICC18Q60200M. In Delaware, Policy Q60200M. Not available in Virginia.
Receipt of accelerated death benefits may affect eligibility for public assistance programs. Benefits may also be taxable and are not expected to receive the same favorable tax treatment as other types of accelerated death benefits that may be available.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (NAIC 92908).
In AR, DE, ID, OK and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Aflac Final Expense policies are not available in New York.
Aflac does not offer Universal or Variable Universal life insurance.
Coverage/plan levels may not be available in all states, including but not limited to NJ, NM, NY, VA or VT.
Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
Aflac WWHQ | Tier One | 1932 Wynnton Road | Columbus, GA 31999
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