Does Whole Life Insurance Have Any Cash Value? 
Whole life insurance can accumulate cash values . Participating whole life can accumulate additional cash values if thepolicyis designed with amaximumterm rider and a paid up additions rider . This tactic could be part of a long termstrategyfor savers.Dividendsup to basis can be withdrawn tax free and policy gains through policy loans . Keep in mind that policy loans charge use a spread loan interest rate and afewcompanies use a more expensive , direct recognition policy loans . The big caveat here is that the policy must be kept in force for the life of the insured . If the policy was surrendered , all gain in the policy via loans , distributed and internal , would be subject to ordinary income tax . 