Can I use my life insurance while Im living?
Life insurance allows you, the policy owner, to build cash value through your life insurance policy that accumulates over your lifetime. This is considered a living benefit of life insurance because, in contrast to a death benefit that pays out when you pass away, you can use the money while you're still alive.
How are you supposed to use life insurance?
Life insurance is a contract between you and an insurance company. Essentially, in exchange for your premium payments, the insurance company will pay a lump sum known as a death benefit to your beneficiaries after your death. Your beneficiaries can use the money for whatever purpose they choose.
How can I use life insurance while I’m alive?
There are three ways that you can use life insurance while you're still alive: accessing cash value (this doesn't apply to term policies), using your living benefits (these also have requirements) and selling your policy.