{"ok":true,"canonical_url":"https://dealroom.so/glossary/life-insurance-cash-value","api_url":"https://dealroom.so/api/public/glossary/life-insurance-cash-value","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"life-insurance-cash-value","term":"Life insurance cash value","group":"Your money in the deal","definition":"This is the savings component that accumulates within certain types of life insurance policies, like whole life. It can be borrowed against or withdrawn, making it a potential source of funds for your equity injection.","what_it_means":"Lenders will look at your personal liquidity to ensure you have sufficient funds for your equity injection and post-closing working capital. If you have a whole life policy, its cash value is considered an asset. You might assign the policy to the lender as collateral or use the cash value for your down payment.","url":"https://dealroom.so/glossary/life-insurance-cash-value","official_sources":[],"related":[{"slug":"whole-life-insurance-policy","term":"Whole life insurance policy","url":"https://dealroom.so/glossary/whole-life-insurance-policy"},{"slug":"life-insurance","term":"Life insurance","url":"https://dealroom.so/glossary/life-insurance"},{"slug":"personal-liquidity","term":"Personal liquidity","url":"https://dealroom.so/glossary/personal-liquidity"},{"slug":"unencumbered-liquid-asset","term":"Unencumbered liquid asset","url":"https://dealroom.so/glossary/unencumbered-liquid-asset"}],"related_questions":[{"question":"Can personal retirement accounts or life insurance cash values be used as collateral if business assets are insufficient?","url":"https://dealroom.so/sba-7a/questions/can-personal-retirement-accounts-or-life-insurance-cash-values-be-used-as-collateral-if-bu"},{"question":"Can a lender rely on a universal life insurance policy that has a cash value for a collateral assignment on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-rely-on-a-universal-life-insurance-policy-that-has-a-cash-value-for-a-collate"},{"question":"When is term life insurance more suitable than permanent life insurance for business protection?","url":"https://dealroom.so/sba-7a/questions/when-is-term-life-insurance-more-suitable-than-permanent-life-insurance-for-business-prote"},{"question":"How does disability insurance complement life insurance for business protection?","url":"https://dealroom.so/sba-7a/questions/how-does-disability-insurance-complement-life-insurance-for-business-protection"},{"question":"How does business overhead expense insurance differ from key-person life insurance?","url":"https://dealroom.so/sba-7a/questions/how-does-business-overhead-expense-insurance-differ-from-key-person-life-insurance"},{"question":"Is a decreasing term life insurance policy acceptable for the SBA's life insurance requirement on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/is-a-decreasing-term-life-insurance-policy-acceptable-for-the-sba-s-life-insurance-require"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Life insurance cash value","url":"https://dealroom.so/glossary/life-insurance-cash-value","source_type":"DealRoom Data"}}