The Free Withdrawal Provision allows policyholders to withdraw a certain amount of their cash value without incurring any surrender charges. Typically, insurers set an annual limit on these withdrawals, often up to 10% of the cash value, offering flexibility for accessing funds.
This feature is beneficial for policyholders who may need occasional access to cash without affecting the long-term growth of their policy. However, it’s essential to stay within the limits to avoid fees or impacts on the policy.