Is withdrawing cash value different from taking a policy loan?

As part of the policy review, if loans and withdrawals become too large, the contract can lapse, and a lapse with gain in the policy may create taxable income. For this insurance planning decision, cash value access can reduce the amount available to support the policy and the death benefit. Review the coverage need and the contract terms before comparing price, because a cheaper policy that solves a different problem is not necessarily better. Read the policy contract alongside the current illustration or benefit summary, then have a licensed professional explain the applicable guarantees, exclusions, surrender rules, and beneficiary provisions in writing.