Panelists describe how cash‑value life insurance can serve as a source of liquidity and mortgage protection

Speakers at a Smithville financial‑literacy event described how certain life insurance products create cash value that owners can borrow against, and they differentiated permanent policies from term products used primarily for death benefits.

Winnie Griffin, a life‑insurance specialist, described permanent policies (whole life and certain universal life forms) as products that accumulate cash value over time and can be used for loans. “It’s like a savings account and the insurance,” Griffin said. “You can borrow from it without explaining to anybody why you need it.”

Mark Terry and other panelists framed the approach commonly called “infinite banking” as a way for some households to create a private source of liquidity. Terry noted a key selling point: when money is held in some permanent policies, policyholders may continue to earn crediting on the full cash value even when they borrow against a portion of it. He cautioned that product details vary and that policy design matters.

Panelists also contrasted term products such as Servicemembers’ Group Life Insurance (SGLI) — which provide death benefits but do not build cash value — with whole life or indexed universal life products that do. Griffin noted permanent policies often carry a fixed crediting component at the carrier level, while indexed or variable versions have returns tied to market indexes.

Caveats discussed included limits on how much cash value can be accessed, the need to repay policy loans to restore the policy’s long‑term benefits and the importance of speaking with an independent advisor to match product features to household goals.

Panelists emphasized that none of the session’s explanations constituted individualized financial advice and recommended attendees consult licensed professionals for personal decisions.