For who life insurance, how do you know how much cash value you build each year? Is the cash value ever equal?

The cash value will be on your statements that you get from the company each year (or quarterly or whenever you get them). When you purchase the insurance you will also get an illustration that the agent is supposed to review with you. This will outline the projected cash values. Depending on the policy type the Cash Values may or may not be gauranteed (Universal Life policies typically are not gaurnateed, however limited pay policies typically are). It is rare that the cash value ever becomes equal to/greater than the insured amount these days. Insurance companies have gotten a lot better at these projections. It is possible though. Many OLD polices this happens to frequently. If there is a sudden HUGE upturn in the markets (if you choose the right investment options for certain insurance products) you could increase the cash value significantly higher than the insured amount.

there are 2 types of Permanent coverage. the 1st is called whole life, there is a "cash value" built in the policy, but that cash value buildup when you are younger helps make up the difference when you are older, a whole life policy usually endows/matures which means it the cash value is equal to the face amount. the second is a universal life insurance policy, this type of policy has a few different types of "cash value" build up. the face value of the policy, will also grow as the "cash value" increases, so that way your policy will never endow/mature. some people also use a UL policy with the cash build up as a tax free buildup/investment income tool. if you are interested in having numbers run for you the people over at Life & Annuity Masters ( 1(800)997-8661 ask for an in house agent to help) can run then from like 50 different carriers

A life insurance is set to endow usually at age 100. Endow is when the cash value equals the face value. The rate of return is negative in the first 10 years and about zero over 20.

There are many variables to your question. However, if you look at the illustration, there will be a GUARANTEED side which shows the minimum cash value of the policy at different points of the policy. Next, you look at the CURRENT column of the illustration. You'll notice (on most) that the cash value will most certainly be greater than the face amount of the policy. The current column shows what the amounts will be if current policy dividends and mortality expenses stay the same.

If you look in your policy there should be a table which tells you the cash value. Or call your insurance company and they should be able to tell you once you give them the policy number.