Whole life, variable universal life, and universal life insurance policies use existing cash values of policies if payments are missed. (investopedia.com)
Protecting existing cash value in a paid - up policy through transfer is a common strategy however. (ohioinsureplan.com)
As a result, investors are likely to discount the cash value more aggressively (i.e., to make a relatively less generous offer if it must include buying out existing cash value on top of the policy death benefit) than a policy with little or no cash value. (kitces.com)