A life insurance policy owner may enjoy which of the following options after the policy has acquired cash value?

A life insurance policy that has acquired cash value offers the policy owner the option to take out a loan against that cash value. This is a significant advantage of whole life and certain types of universal life insurance policies.

When a policy has matured to the point of gaining cash value, the owner can borrow against that value without having to undergo a credit check or provide income verification, as the loan is secured by the policy itself. The money borrowed can be used for various purposes, and one of the attractive features of these loans is that the insured does not need to repay them on a strict schedule. Instead, unpaid loans will be deducted from the death benefit when the policyholder passes away.

This option provides liquidity and access to funds without the need to surrender the policy or sacrifice insurance coverage. The flexibility of utilizing cash value enhances the financial planning aspects related to life insurance, making it a valuable tool in managing personal finances and intergenerational wealth.

The other options mentioned either do not accurately reflect the benefits associated with policies that have cash value or do not align with the typical features of life insurance.