Tax-Free loans are available from your accumulated cash value at any age, without penalties or early withdrawal fees. When you borrow from your account, your accumulated balance stays intact, and continues to earn interest and compound. Your loan is a separate transaction. This means that you are not losing interest on your accumulated balance. Since the loan amount is usually much lower than what you are earning, you are still earning interest on money you borrowed. This is called “arbitrage”. This is not usually available in 401k’s, 457’s, or IRA’s. When you remove money from those types of accounts, your earnings reduce as you remove money from it.