Can anything be done with a term life policy worth about $50,000? 14 Answers as of March 21, 2014

In other words, can it be modified to a lesser amount so that an individual can receive cash from it ($25,000) or can someone who's homeless/jobless like myself receive a loan against it?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Law Offices of George H. Shers | George H. Shers
Check with the insurance company as to what they allow in your case, but term insurance normally has no face value.
Answer Applies to: California
Replied: 3/21/2014
Law Office of Jeffrey T. Reed | Jeffrey T. Reed
Check with the insurance company!
Answer Applies to: California
Replied: 3/21/2014
Ronald K. Nims LLC | Ronald K. Nims
A bit of background there are two types of life insurance, term and cash value. Cash value insurance has a number of different varieties - whole life, universal, adjustable life. Term insurance means that you make a payment each year and buy one year's coverage - there is no cash value. The only way to get money on a term life policy is to die while the policy is in effect.
Answer Applies to: Ohio
Replied: 3/20/2014
Peters Law, PLLC
Peters Law, PLLC | Mark T. Peters, Sr.
No, that is the downside of term, there is no cash value for the term policy.
Answer Applies to: Idaho
Replied: 3/20/2014
Sebby Law Office
Sebby Law Office | Jayne Sebby
Call the insurance company and ask them. Each company sets its own policies.
Answer Applies to: Nebraska
Replied: 3/20/2014
    Neal M. Rimer, Esquire
    Neal M. Rimer, Esquire | Neal M. Rimer
    Term Life Insurance policies generally have no "cash value" so there is no ability to "cash in" the policy, a part of the policy, or to borrow against the policy. A whole life policy (universal or otherwise) may give you other options. In decreasing the policy, the only advantage would be to decrease the annual premium cost.
    Answer Applies to: California
    Replied: 3/20/2014
    James T. Weiner & Associates, P.C.
    James T. Weiner & Associates, P.C. | James T. Weiner
    A term life policy has no cash value and generally cannot be turned into cash. Only a whole life or universal life policy has cash value.
    Answer Applies to: Michigan
    Replied: 3/20/2014
    Minor, Bandonis and Haggerty, P.C.
    Minor, Bandonis and Haggerty, P.C. | Brian Haggerty
    Maybe. It depends on the policy terms.
    Answer Applies to: Oregon
    Replied: 3/20/2014
    Irsfeld, Irsfeld & Younger LLP | Norman H. Green
    A term life policy has no cash value. Generally, only way to get cash from it is to die.
    Answer Applies to: California
    Replied: 3/20/2014
    Law Office Of Victor Waid
    Law Office Of Victor Waid | Victor Waid
    Talk to your insurance company who issued the policy.
    Answer Applies to: California
    Replied: 3/20/2014
    Ashcraft & Ashcraft, Ltd.
    Ashcraft & Ashcraft, Ltd. | Randall C. Romei
    Term life policies, unlike whole life policies, do not accumulate cash value. You cannot borrow against them and they cannot be surrendered for cash.
    Answer Applies to: Illinois
    Replied: 3/20/2014
    The Bryan Law Firm, L.L.C.
    The Bryan Law Firm, L.L.C. | Douglas L. Bryan
    My guess would be no, in that generally a term life policy does not have a cash value to borrow against. But you should contact your insurance company and get a definitive answer from them.
    Answer Applies to: Louisiana
    Replied: 3/20/2014
    James Law Group
    James Law Group | Christine James
    Term policies do not have cash value so you cannot get a loan against it.
    Answer Applies to: California
    Replied: 3/20/2014
    Frederick & Frederick PLC | James P Frederick
    In most cases, there is no right or option to borrow against a term life policy. The reason for that is that the policy might eventually be cancelled or terminated, if the insured outlives the term in question. The insurance company would then be out of pocket and they do not put themselves in that kind of situation.
    Answer Applies to: Michigan
    Replied: 3/20/2014
Click to View More Answers:
12 3 Free Legal QuestionsConnect with a local attorney