Yes, you can cash out your direct term life insurance policy. Depending on the insurer, you may be able to take out a loan against the policy, receive partial or full surrender of the policy value in exchange for cancelling the coverage, or use it as collateral to secure a line of credit. If you choose to cancel your coverage and receive a payout from the insurer, keep in mind that you will not receive back any premiums paid into the policy so far - only what has accrued in terms of cash value over time (if applicable). Additionally, if there is still debt associated with the policy at maturity, then this amount must be paid off before anything else. Finally, some insurers have restrictions such as age limits regarding when cashing out is allowed.