While income replacement is the principal objective of term insurance, many policyholders nowadays have started looking into the cash value term insurance plan to build a secured financial nest for their retirement as there are limited or no options to cash out a conventional term insurance plan. Take a look at the frequently asked questions listed below and find out whether you can get cash in term insurance or not.
The straightaway answer to this question cannot be given in a yes or no as it is a bit more complicated than that. A standard term life insurance plan usually provides mortality benefits to the nominee or beneficiaries of the insured person. It does not generally hold a cash value till the time policyholder is alive.
However, if you feel you have accumulated ample funds in the policy, you can get numerous other benefits like getting the premium amount reduced. You can also obtain a loan against your term insurance policy.
Although, one thing that you must always keep in mind while obtaining a loan on your term insurance policy is that if you fail to repay that loan on time your beneficiaries will get a reduced sum as a mortality benefit of the policyholder.