Which option allows a policyholder to access cash value from a whole life insurance policy?

Accessing cash value from a whole life insurance policy is facilitated through a loan against the policy. This option allows the policyholder to borrow money from the cash value that has accumulated within the policy. One of the benefits of this approach is that the policyholder retains the death benefit and does not have to immediately pay taxes on the amount borrowed, as long as the policy remains in force.

When a loan is taken against the policy, interest is charged on the borrowed amount, and any unpaid loans may reduce the death benefit if not repaid before the policyholder's death. However, borrowing against the cash value can serve as a useful financial strategy for accessing funds while still keeping the policy active.

The other options do not provide a means of accessing cash value from a whole life policy in a straightforward manner. Rider enhancement typically adds benefits or features to the policy rather than allowing direct access to cash value. Premium reduction refers to a decrease in the amount paid for coverage, which does not directly relate to accessing cash. Lastly, surrendering the policy leads to a termination of coverage, and while it allows access to the cash value, it also ends the policy altogether, which is not what is typically desired by policyholders looking for liquidity while maintaining insurance coverage.