In some situations, it’s possible for the owner of a life insurance policy who is terminally or chronically ill to get cash out of the policy without any tax cost while he is still alive.

The policy owner may be able to receive an accelerated death benefit directly from the insurance company itself. However, the insurer may impose restrictions on this option. For example, an accelerated benefit may be available only to an insured with a life expectancy of six months to one year.

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