Who benefits from the investment growth in a whole life insurance policy?

The policyholder benefits from the investment growth in a whole life insurance policy. In a whole life insurance policy, part of the premium payment goes toward building cash value over time, which accumulates interest and grows. This cash value is an important feature, as it not only serves as an asset that the policyholder can borrow against or withdraw from but also contributes to the overall value of the policy.

When the policyholder maintains their policy, they can use this cash value for various purposes, such as funding a major purchase, supplementing retirement income, or covering unexpected expenses. This dynamic makes whole life insurance an attractive option for those seeking both insurance coverage and a way to accumulate savings. Thus, the investment growth directly benefits the policyholder, providing them with financial flexibility and security.