Accessing Your Cash Value

Why is accessing your cash value so important?

Your whole life cash value is your savings that grow tax free inside the policy. How you access those savings can have dramatic implications for the long term growth of that cash value, and death benefit.

What are the different ways of accessing cash value?


The most basic form of accessing cash value is to simply pull money out of the policy, which is called surrendering. Surrendering can have significant tax implications and lowers your death benefit. Once you surrender cash out of a policy it cannot be put back into the policy.

Borrow from your carrier (Policy Loan)

Borrowing from your carrier preserves the death benefit and tax advantages of your underlying cash value. However, rates charged on policy loans are currently up to 1.75% higher1 than those of an iLOC.

Borrow through Inclined

iLOCs offer all of the death benefit preservation and tax advantages of borrowing from your carrier, but with a lower rate than your carrier offers.2

Is this a big deal?

Yes. A rate up to 1.75% lower drives exponentially higher growth in your underlying net cash value and death benefit.

Example Outcome

A 65-year-old with $3,383,951 in net cash value and $5,611,767 in net death benefit is ready to utilize their whole life policy for retirement income.

Maximizing retirement income with policy loans from their carrier may result in annual income of $187,500 (*) from age 65 to 85, and a net death benefit of $62,818 at age 100. Instead, if they maximize their retirement income with an Inclined iLOC at a lower rate (*) they may be able to generate the same annual income of $187,500 per year while leaving a net death benefit of $4,221,005 at age 100 - an exponentially better outcome.

Graph showing death benefit over time

(*) This analysis is an illustration of potential benefits, and assumes surrender to basis first, followed by borrowing via policy loans. Inclined borrowing scenario is best optimized with straight borrowing. Example policy loan rate is 5% APR. Example Inclined borrowing rate is 3.25%. Inclined rate is variable, and may change based upon the WSJ Prime rate over the term of the loan. Changes in the Inclined rate will impact benefits as compared to a typical carrier policy loan.


As of Q4 2021 the policy loan rate at six of the largest carriers varied between 4.40% and 6.00%. Inclined’s lowest available Annual Percentage Rate (APR) is 3.25%, which is a variable rate indexed to the Prime index, as published in the Wall Street Journal (WSJ Prime), plus your margin. The lowest APRs are for the most qualified applicants based on factors such as policy size; rates will be higher for other applicants, which will reduce potential benefits as compared to a typical carrier policy loan.


Consult with your tax advisor.