Additionally, you may elect to purchase the policy so that a level death benefit is purchased and the cash value accumulates «on top of» or in addition to the death benefit or you may choose to purchase a level death benefit in which the cash value acts as
a reserve against the death benefit (thus lowering the actual cost you pay for the death benefit over time).
Life insurance may provide just basic
death benefit protection (i.e. term life insurance) or it may provide a
death benefit with an equity value, called a cash value, which is a cash
reserve that builds up
against the
death benefit of the policy to cover the costs associated with paying out the future
death benefit claim..