Can You Borrow Money From A Term Life Insurance Policy? 
No , you can not 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 can not 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 can not borrow money from a term life insurance policy . 