Life insurance provides financial support to your family in the event of your passing. But this insurance can also offer benefits while you are still alive.

Cash value in life insurance refers to a savings component present in certain types of policies, such as whole and universal life. It builds value from the premiums you pay, growing at a rate determined by your policy (either fixed or variable).

For wealthy and ultrahigh net worth clients, the advantages often prove very attractive. But the policies carry some sophisticated planning challenges and a high cost.

Fact checked by Vikki Velasquez Life insurance pays out a death benefit after you pass away to help your family with expenses and replace your income. There are several ways to set up this coverage, and your life insurance policy should be tailored to meet your family's unique needs.