A. Yes, cash value can be used at any age
Before age 59½: No penalties for accessing the cash value.
Age 62: No effect on Social Security benefits by accessing the cash value for supplemental retirement income (as long as the policy maintains its tax-advantaged status).
Age 65: No effect on Medicare Part B premiums by accessing the cash value for supplemental retirement income (as long as the policy maintains its tax-advantaged status).
Age 70½: No required minimum distributions (unlike qualified plans or IRA assets).
Opportunity reserve during your working years
Cash value in a life insurance policy can be an income tax-free private reserve for certain life events, including:
- Provide money to start or continue a business
- Pay tuition
- Help fund a child’s wedding
- Funding for “once in a lifetime” purchases