How can the cash value in a whole life policy be utilized?

The cash value in a whole life policy can indeed be borrowed against or withdrawn, which makes this option correct. Whole life insurance policies build cash value over time, allowing policyholders to access a portion of the accumulated value during their lifetime. This can serve as a financial resource for various needs, such as emergencies, education expenses, or funding a business.

When a policyholder borrows against the cash value, they typically pay interest on the loan. If the loan is not repaid, the outstanding amount will be deducted from the death benefit when the insured passes away. On the other hand, withdrawing cash from the policy reduces the cash value and the death benefit but can provide immediate cash needs.

The other options do not accurately describe the characteristics of the cash value in a whole life policy. For instance, saying it can only be withdrawn at maturity overlooks the flexibility of borrowing against the policy. Also, the notion that it is non-transferable to another policy does not reflect the ability to switch or convert policies under certain circumstances. Lastly, claiming that it must be left to accumulate for life ignores the policyholder's right to access the funds as needed.