Whole Life Insurance Florida FL
Reader’s Question:
I have a whole life insurance policy with a company based in Alabama. I have been paying premiums for two years already and this year, I am planning to purchase a new house in Florida. Can I still use up the amount from the cash value account of my whole life insurance in Alabama?
Frank
Montgomery, AL
Thank you for asking Frank
Yes. Ordinary whole life insurance offers a “permanent protection” with a cash value that grows over time. It provides a level death benefit and level premiums throughout your life for as long as you continue to pay the premiums. It also contains a cash value account that builds over time which eventually equals the face amount of the policy.
Normally, in whole life insurances, the Florida insurance company owns and retains title to the cash value of your premiums but will make it available to you in the form of low interest loan. I you don’t pay them back the interest, you risk your beneficiaries receiving a reduced death benefits.
It is best to consult your local life insurance policy in Alabama for more detailed information
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