actually borrow against the money you've put in at any time. Once your policy builds cash value, it's actually quite liquid. You can pull money out at any time, but of course that money will no longer be there to earn interest, build value, etc. I look at it personally as a long term 20-30+ year investment in the stock market that I most likely won't touch, except that it isn't allowed to lose value, and the gains are tax free. I bought one policy for myself when I was 28, and added another on my 1 year old a few years ago (cheaper and quicker to build value). It will be a great college fund for her, but I'm hoping she gets a scholarship, in which case it's a big investment.