If you have a whole life insurance policy, you can withdraw or even borrow money from the policy. Doing so will reduce the amount your beneficiaries receive as a death benefit, and if you deplete the cash entirely, it effectively cancels your policy. Your financial plan may benefit from using life insurance as a financial cushion and investment, too. A whole life policy does not have to be used to support your dependents. Your life insurance policy can be part of your tax savings plan, and you can even designate a charity as your beneficiary.