The Advantages
a. Tax Deferral on Cash Accumulation
For people familiar with Term Life policies, the idea of over-funding a cash value life insurance policy might sound counterintuitive, but it is the key advantage of cash value insurance - because the inside cash and its accumulation is YOUR cash, not insurance company's cash, and the cash value policy offers tax deferral on the inside cash accumulation,
b. Tax Free Withdrawals
If the cash value policy is structured properly, you could take tax-free loans from the policy to do whatever you need to. A large family reunion with your kids and grandkids, a large unexpected medical bill, an unexpected but great short term business opportunity that requires a large sum of investment, ...
c. Income Tax Free Death Benefit
Finally, like any life insurance policy, the death benefit of the cash value policy is income tax-free, pursuant to IRC § 101(a).
It's important to structure your cash value policy the right way to maximize these advantages.