Additionally, it accumulates cash value that policyholders can borrow against or withdraw for various financial needs, though it affects the death benefit.

Source: https://dodbuzz.com/life-insurance-variations-2023-depth-details/

The Arizona court noted that courts have differed on this issue, with some courts ruling labor can be depreciated when determining actual cash value and others saying labor may not be depreciated for various reasons.

Source: https://www.insurancejournal.com/news/national/2023/02/16/708211.htm