The cash value within the policy is not guaranteed but rather increases or decreases according to the investment experience of the investment options you select. In either case, as long as you pay the necessary premiums, you have the death benefit protection you need while you gain an opportunity for tax-deferred growth of the cash value inside your policy. Your policy's death benefit and cash value would be reduced by the amount of the loan. Obviously, any money you borrow from the policy does not participate in the investment experience of the policy investment options you've selected. You can choose from policies having different premium payment amounts and patterns.
Some policies are payable for life while others are guaranteed to be paid-up after several years.
Some feature guaranteed level premiums while others have premiums that increase once or more in the future. Many offer the opportunity, within limits, for you to tailor the premium amount and frequency based on your own needs and preferences. Premiums are often significantly lower than for permanent insurance, but may increase as you get older. Most term policies allow you to renew every year without undergoing any additional insurability tests. Term insurance is ideal for covering a specific limited-term need, for example, an outstanding mortgage or business loan.