How do I take out money from my life insurance policy?

Accessing your cash value tax-free from your life insurance policy involves withdrawing all of your premium payments tax-free and then loaning the rest of the value out from your death benefit. In cash value life insurance, your life insurance death benefit will grow over time with the cash accumulation value. Therefore, by taking an interest-free loan from your death benefit, you are essentially retrieving the cash returns of the “extra” premium you’ve invested that didn’t go towards the cost of insurance and other fees of the policy. Then, your death benefit will naturally pay back the loan once you pass and the beneficiaries will receive the rest.