No, you cannot borrow money from a term life insurance policy because there is no cash value from which to borrow. The death benefit is only paid when death occurs, so you cannot borrow from the death benefit.
The one exception is if you are diagnosed as terminally ill and have an accelerated death benefit rider. That would enable you to take some of the death benefit in cash if you are diagnosed as terminally ill.
There are a few term policies that offer living benefits like that for other reasons, such as being diagnosed as chronically or critically ill. Improved term products like that are being developed. Keep in touch to see how you could use your term for purposes other than death, even though technically, you cannot borrow money from a term life insurance policy.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
It is highly unlikely that you will be able to receive any cash from a term life policy except as a death benefit. The cash value feature of permanent insurance is what makes the policy “permanent.” The increasing cash value compensates for the ever increasing rate of mortality as you get older. Term insurance is temporary coverage and doesn’t accumulate cash in most cases.
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The one exception is if you are diagnosed as terminally ill and have an accelerated death benefit rider. That would enable you to take some of the death benefit in cash if you are diagnosed as terminally ill.
There are a few term policies that offer living benefits like that for other reasons, such as being diagnosed as chronically or critically ill. Improved term products like that are being developed. Keep in touch to see how you could use your term for purposes other than death, even though technically, you cannot borrow money from a term life insurance policy.