What happens to the cash value in my policy when I die?
When you die, the insurance company will pay the death benefit. No matter how much cash value you may have had in the policy the moment before you died, your beneficiaries can collect no more than the stated death benefit. Any loans you have not repaid (plus interest) will be subtracted from the death benefit.

The result: your beneficiary could wind up with less than the face amount of the policy.

The exception: some whole life policies pay both the death benefit and the cash value when you die.

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1. I purchased a life insurance policy and now I have decided I don't want it. My agent told me I have a "free look" period. What does "free look" mean?
2. Can an insurance company void my policy if I made a mistake in completing the application?
3. A family member has died. We are sure that he had insurance policies but we cannot find any. Can you check to see what policies exist?
4. When I bought my life insurance policy, the agent said it would be "paid up" after ten years, but it’s been that long and I’m still getting bills. Why?
5. Who can take out a policy on my life?
6. Must my beneficiary have an insurable interest?
7. What about companies that advertise "no physical exam?"
8. Some life insurance ads claim "you cannot be turned down." What's the catch?
9. Why is term life often called "temporary" insurance?
10. Why are some insurance agents reluctant to sell term insurance?
11. What do I get when I buy term insurance?
12. Does that mean I've wasted my money if I don't die during the term?
13. An insurance agent has suggested I switch term companies every couple of years to take advantage of the company's promotional rates in the first couple of years. Anything wrong with that?
14. I understand my permanent policy would be "fully paid up" at age 65. What does that mean?
15. What happens to the cash value after the policy is fully paid up?
16. I had a policy that was paid up; now I'm told I don't. What can I do?
17. What is a "participating" policy?
18. How much cash value is in my policy?
19. What happens to the cash value in my policy when I die?