What happens to the cash value of a whole life insurance policy when the insured reaches age 100?

When the insured reaches age 100 in a whole life insurance policy, the cash value of the policy equals the face amount. This is a fundamental characteristic of whole life insurance, which is designed to provide a guaranteed death benefit and a growth of cash value over time. As the insured ages and approaches maturity of the policy, the cash value accumulates and is intended to equal the death benefit at the end of the policy term.

At age 100, the insurance company is obligated to either pay out the face amount to the insured if they are still alive, or to the beneficiaries upon their death. This ensures that the policyholder has access to their savings component in the form of cash value, confirming the policy's purpose of providing both protection and a savings element throughout the insured's life.

In contrast, options about losing cash value or it being taxable do not align with the structure of whole life insurance, where the cash value is protected and non-taxable under normal conditions until it is withdrawn in certain scenarios.