What is a common way for whole life policyowners to access funds without terminating their policy?

In a whole life insurance policy, policyholders have the ability to access funds while keeping the policy active through policy loans. When a policyholder takes out a loan against the cash value of their whole life policy, they are borrowing money from the insurance company, which uses the policy's cash value as collateral.

This method allows policyowners to obtain funds for various needs, such as emergencies, tuition, or other financial expenditures, without surrendering the policy or losing benefits. The loan amount does not have to be repaid immediately; however, any unpaid interest and principal will reduce the death benefit if the policyholder passes away before it is repaid.

While dividends can also provide some access to funds, they are not the most direct means for accessing cash. Similarly, cash payments could imply cash surrendering the policy, which would terminate coverage. Beneficiary claims refer to what beneficiaries receive upon the insured's death, which does not apply to current access for policyowners. Thus, policy loans stand out as the primary method for accessing funds without terminating the policy.