During a sales presentation for an ordinary life insurance policy, a producer may legally state that the insurance company guarantees what?

In the context of an ordinary life insurance policy, the statement that the insurance company guarantees cash values is valid because life insurance policies, particularly whole life insurance, are designed to accumulate cash value over time. This cash value grows based on a guaranteed interest rate set by the insurer.

The cash value aspect of life insurance is a significant feature that distinguishes it from term insurance, which does not build cash value. The guarantee of cash value is a crucial selling point for producers, as it provides a tangible benefit to policyholders, allowing them to access these funds through loans or withdrawals if needed.

This guarantee fosters trust in the insurance offering, indicating that the policyholder has an asset that can be utilized during the life of the policy. Therefore, the proper representation of cash value guarantees aligns with regulatory standards in West Virginia and the broader insurance industry, helping to ensure that consumers have a clear understanding of their policy benefits.