First, only a permanent life insurance policy can be cashed in, not a term life policy. Permanent life plans build up cash value over time.
So, you may have some cash value in your permanent life insurance and you can cash in the policy to get the money, if you wish.
However, another option may be to take out a temporary loan, if you only have a short term need for the money. That way, you can keep your life insurance in pace. Life insurance companies usually allow you to borrow up to 80% of the cash value of your life insurance policy.
Also, if you do cash in your life insurance policy, how will your final expenses like your funeral and burial costs be paid?
make sure you consider other options for getting money if you need it, before you choose to cash in your life insurance policy, ending your life insurance coverage.
You may want to review your situation with your life insurance agent, review your life insurance policy loan options, and discuss your situation with your financial planner before making a decision.