Which kind of life insurance policy lets you take out a cash withdrawal against its value?

Whole life insurance policies allow borrowing against the policy cash value - not the face value (death benefit).

A permanent life insurance policy builds cash value over time. Types of permanent policies include whole life, variable universal life and fixed universal life.

However, a permanent life insurance plan may take several years to build cash value inside the life insurance policy. You may be able to take a loan from the amount of cash value inside the policy. Learn more about whole life insurance and how it works.