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- Provision of a readily available fund. The cash value is obtained quickly and without publicity when a business has a sudden need for cash to take advantage of unexpected opportunities or to meet unforeseen emergency expenses.
- The cash value is ideal for a bank loan because it has a guaranteed market value that increases with the passage of time. The business can borrow on the cash value if the insurance company’s interest rate is lower than the bank rates.
- The cash value appearing on the balance sheet indicates sound financial management with long-range planning. Creditors are obviously more willing to look favourably on a company that has insured its human assets. Please note that these additional benefits are subject to the type of insurance purchased, Term Assurance has no cash value.