Whether you can cash out a 20-year policy depends on whether it is a term policy or a permanent policy. If it is a 20-year term policy, it builds no cash value and cannot be cashed out; it simply provides temporary coverage that expires. If it is a 20-year permanent policy (such as a 20-pay whole life contract), it accumulates tax-deferred cash value that you can withdraw, borrow against, or surrender for its full cash surrender value.
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