What is one advantage of whole life insurance policies?

One advantage of whole life insurance policies is the ability to borrow against the cash value. Whole life insurance not only provides a death benefit to beneficiaries but also accumulates a cash value over time. This cash value works as a savings component that grows at a guaranteed rate set by the insurance company. Policyholders can take out loans against this accumulated cash value, providing them with liquidity in times of need. This feature serves as a financial asset that can be accessed without the need to surrender the policy, making it a beneficial option for those who value both insurance coverage and savings elements.

The cash value grows on a tax-deferred basis, and as long as the loan is repaid, it does not typically affect the death benefit received by beneficiaries. This flexibility in financial management is a significant advantage over many other types of life insurance.