Cash out whole life insurance

My grandfather started a whole life insurance policy when I was born, I’m now 26.

The cash value of the policy is $65k, death benefit $500k

I purchased a home last week with an assumable mortgage. In order to do this I had to take on a 40k HELOC at an 8.5% interest rate to cover the previous owners equity.

I also don’t have very much in the way of liquid cash at the moment as I sunk all of my savings into the down payment on this purchase to reduce the HELOC.

Do I cash out and take the ~53k after tax to help rebuild my savings and eliminate the HELOC?

Any advice appreciated.