01.Core Concepts

Another characteristic of ordinary life insurance policies is the accumulation of cash surrender values A policyholder overpays for insurance protection during the early years, resulting in a legal reserve and the accumulation of cash values The policyholder has the right to borrow the cash value or exercise a cash surrender option An ordinary life policy is appropriate when lifetime protection is needed and can be used to save money A major limitation is that some people are still underinsured after the policy is purchased ‹#›