Which life insurance policy feature allows for financial access during the policyholder's life?

The feature that allows for financial access during the policyholder's life is policy loans. When a life insurance policy has a cash value component, policyholders can borrow against this cash value. This borrowing does not require a credit check, and the loan amount does not need to be repaid during the policyholder's lifetime, although any outstanding loans plus interest will be deducted from the death benefit if the policyholder passes away with an outstanding balance.

This feature is particularly useful for individuals who may need funds for emergencies, opportunities, or significant expenses without the need to liquidate other assets or face taxation on withdrawals, as the loans do not incur taxes unless the policy lapses. This makes policy loans a flexible financial resource for policyholders, allowing them to access the value built within their life insurance policy.

Cash value accumulation is related but does not directly provide access to funds; it simply describes the growth of cash value over time. Tax-deferred growth pertains to the cash value growing without being taxed until withdrawn, but again, this does not specifically address accessing those funds. Premium waivers refer to the ability to skip premium payments under certain circumstances, which does not relate to accessing cash during the insured's lifetime.