# Cash Value

*Insurance — Finicade finance glossary*

Cash value is the savings component inside a permanent life policy, which you can borrow against or surrender for. It grows tax-deferred, which is the main tax argument for these products. Two details reduce the appeal: cash value is typically negligible for the first several years while commissions are recovered, and in many policies the death benefit paid to your heirs does not include it.

**Also known as:** surrender value, policy cash value

**Related terms:** [Whole Life Insurance](https://finicade.com/glossary/whole-life-insurance), [Universal Life Insurance](https://finicade.com/glossary/universal-life-insurance), [Surrender Charge](https://finicade.com/glossary/surrender-charge), [Life Insurance](https://finicade.com/glossary/life-insurance), [Tax Deferral](https://finicade.com/glossary/tax-deferral)

Source: https://finicade.com/glossary/cash-value