If a whole life policy has not accumulated cash value, what can the policyowner not do?

In a whole life insurance policy, the cash value is a significant feature that builds over time. If the policy has not accumulated any cash value, the policyowner cannot take a policy loan. This is because loans against a whole life policy are secured by the cash value; without cash value, there is no collateral to support the loan.

On the other hand, the policyowner retains the ability to change beneficiaries, request a surrender of the policy, or modify the coverage terms, regardless of whether there is cash value. These actions do not depend on the accumulation of cash value and are instead part of the rights granted to the policyowner within the policy contract. Therefore, the restriction on taking a policy loan is directly linked to the absence of accumulated cash value.