The most alluring aspect of whole life insurance besides its death benefit is its investment value. The insurance company will take a portion of your premiums and invest it. As that portion grows in value so will the cash value of your insurance policy.

Many policy holders who reach a stage where they no longer have dependants can greatly benefit from the rise of the cash value of their policies.

Legislation allows policy holders to withdraw the cash value of their policies and enjoy those proceeds tax free. The way that it works is that the policy holder is actually borrowing the money from the policy. The insurance company will then cover the loan from the proceeds of the death benefit, which are usually greater than the cash value of the policy.

So if Mr. Z reaches the age of 65 and no longer had dependants he might decide to withdraw the cash value of his policy. Let