Term Life Insurance does not have cash value or the ability to take policy loans, like Permanent (Indexed/Universal or Whole) Life. However, there are several major carriers that offer Living Benefit (Term or Permanent) policies that will accelerate up to 100% of the death benefit, depending upon severity of illness, in case of Critical Illness (Cancer, Heart Attack, Stroke, Major Organ Transplant, Paralysis, etc.); Chronic Illness; Terminal Illness; or Death.
Accelerated funds can be used for any purpose, such as: medical bills, mortgage payments, household expenses, lost income,long term care, etc. And, the premiums are comparable to any other policy that only pay a death benefit. I have had multiple clients receive $50K-$250K after developing a serious illness. It is normally the only Life Insurance I recommend to clients.
Term life insurance does not have cash value, and therefore there is no cash to take out of it. If you buy ROP (return of premium) term life insurance, it will pay back all you paid in if you are alive at the end of the term. Many term life insurance policies offer a free terminal illness rider that will allow you to take half the death benefit in cash if you are diagnosed with a terminal illness. And several term policies will allow you to use the death benefit as cash if you are diagnosed with certain critical illness, or are unable to perform two or more ADL's.
Unfortunately, term life insurance has no cash value to build up. Therefore there is no money to cash out. Think of term life insurance as renting your life insurance and permanent life insurance as buying life insurance. Cash value plans are policies such as whole life and universal life insurance. These are more expensive premiums but do build cash value for times when you need money.
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Accelerated funds can be used for any purpose, such as: medical bills, mortgage payments, household expenses, lost income,long term care, etc. And, the premiums are comparable to any other policy that only pay a death benefit. I have had multiple clients receive $50K-$250K after developing a serious illness. It is normally the only Life Insurance I recommend to clients.