Does Funeral Insurance Have Cash Value

Shawn Plummer

CEO, The Annuity Expert

Does Funeral Insurance Have Cash Value

Yes, most final expense and funeral insurance policies are whole life insurance policies, which means they typically build cash value over time. This cash value can be borrowed against or used in various ways depending on the terms of the policy.

Get a life insurance quote with cash value to combine financial security and long-term investment in one policy.

What is Cash Value?

  • Definition: Cash value in a life insurance policy is a component that accumulates value over the life of the policy.
  • Function: It serves as a savings component and can be used as collateral for loans or even withdrawn, subject to policy terms.

How Does Cash Value Work in Funeral Insurance?

  • Accumulation: A portion of your premium payments goes towards building the cash value.
  • Interest Growth: The cash value typically earns interest at a rate specified by the policy.
  • Accessing Funds: Policyholders can access cash value through loans or withdrawals, which may reduce the death benefit.

Related Reading: Understanding Funeral Policy Cancellation

Benefits of Cash Value

  • Financial Flexibility: Provides a financial resource you can tap into.
  • Growth Over Time: The cash value grows tax-deferred, providing a potentially increasing resource.


  • Impact on Benefits: Withdrawing or borrowing against the cash value can reduce the death benefit.
  • Policy Surrender: Surrendering the policy for its cash value means losing the insurance coverage.

Types of Policies with Cash Value

  • Whole Life Insurance: Offers lifetime coverage with a cash value component.
  • Universal Life Insurance: Provides flexible premiums with a cash value component.


Understanding the cash value component in funeral insurance is crucial for maximizing the benefits of your policy. It offers financial security and flexibility, but it’s important to consider how accessing these funds can impact your overall coverage. If you have further questions or need more detailed information about your policy, contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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