Term life insurance is temporary life insurance and pure life insurance protection - it does not have a savings feature.
Whole life insurance provides lifetime protection and builds up cash value inside the policy over time.
Whole life plans allow the owner of the life insurance coverage to take a loan from the cash value and pay it back into the policy with interest.
Usually, it takes several years before any cash value starts to build in the policy for whole life.
Once there is cash value inside the life insurance policy, you may request a loan from the policy. The insurance company may allow you to take a loan of up to 80% of the cash value in the policy.
If the amount of the loan is not repaid on time, the coverage amount of the life insurance is usually reduced by that amount owed on the loan.