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Life savings insurance, more commonly known as cash value insurance, refers to certain types of life insurance in the United States, which typically seek to cover all the years a person will live.
It works when you purchase permanent life insurance, either whole life or universal life, and part of the insurance premium is deposited into a savings account.
Whole life insurance offers lifetime coverage and guarantees payment to beneficiaries upon the death of the insured.
This type of insurance includes a “cash value” feature, which acts as an accessible savings or investment fund in an emergency.