What can policyholders do with the cash value in a Variable Life Insurance policy?

In a Variable Life Insurance policy, policyholders have the option to borrow against the cash value or withdraw funds from it. This feature provides flexibility in managing the policyholder's finances.

When a policyholder borrows against the cash value, they can access funds for various purposes, such as emergencies, investments, or personal expenses, while still maintaining the life insurance coverage. Withdrawals also provide immediate access to cash, although they may reduce the death benefit and cash value of the policy.

This aspect of Variable Life Insurance distinguishes it from other types of life insurance, which may not offer such accessibility to cash value. Hence, the correct answer highlights the practical financial tools available to policyholders, allowing them to take advantage of the accumulated cash value in their policy. The ability to use the cash value flexibility supports policyholders in managing their financial planning effectively.