Where else can you receive «true»
compound growth, except in a policy where you never need to withdraw the funds, but where you simply borrow
against your cash
value?
Whole life offers (1) cash
value is liquid, creating cash flow, (2) income tax advantages, (3) the ability to borrow
against it as collateral through a life insurance policy loan and (4) the cash
value grows exponentially due to true
compound interest.
Notably, depleting the cash
value with a withdrawal may mean the policy will still ultimately need another contribution (i.e., more premiums) to sustain in the long run; nonetheless, if the cash
value is in a downward spiral towards lapse anyway, a withdrawal to repay the loan will help extend the life of the policy, given that the crediting rate of the cash
value is always lower than the interest rate of the loan
compounding against it (which for newer policies might be a 0.5 % to 1 % spread, but on older policies can be a 2 % spread or more).