Which component makes cash value life insurance attractive to some policyholders?

The appeal of cash value life insurance lies primarily in the ability to borrow against the policy. This feature allows policyholders to access the cash value that accumulates over time, providing a source of funds that can be used for various financial needs, whether that be for emergencies, investments, or other expenses. The cash value grows tax-deferred, and policyholders can take out loans against this amount without undergoing a credit check, making it a flexible financial tool.

As the cash value increases, policyholders can build a significant asset that adds a layer of financial security. This option contrasts with other types of life insurance that do not have a cash value component, making cash value life insurance particularly attractive for individuals looking to combine life insurance with an investment component.