If you purchase a permanent life insurance policy that has the ability to build cash value; when you pay the policy premiums part of the money is used to cover policy costs and the remaining portion will towards building cash value. The cash value that can build up on a permanent life insurance policy can be accessed from the policy through withdrawals and tax-advantaged loans as source of supplemental income at a future point in time.
You are never obligated to take either loans or withdrawals from your policy. Upon your death the remaining death benefit on the policy will be paid to your beneficiaries. However, it’s important to remember that if you take loans or withdrawals, it will reduce the policy’s death benefit and cash values and may affect how long the insurance policy is in effect.