Can the cash value of a Variable Life policy be used for retirement funding?

The cash value of a Variable Life policy can indeed be utilized for retirement funding, and policyholders have the flexibility to access it through loans or withdrawals. As the investment component of the variable life insurance grows over time, the cash value can be a useful financial resource.

When policyholders withdraw from the cash value, they can access these funds for various purposes, including supplementing their retirement income. Additionally, policyholders can take out loans against the policy's cash value; these loans do not incur taxation as long as the policy remains in force and is not surrendered. These features make Variable Life policies advantageous for those looking to bolster their retirement funding strategies.

Access to the cash value is a distinct benefit of these types of policies, differentiating them from other options that may impose stricter limitations on when and how funds can be accessed.