Yes, if you have a Whole Life or Universal Life policy that has cash value built up in it, you can choose to surrender your policy and cash it out. Once that is done, you will no longer have life insurance coverage.
If you want to take the cash out of your policy and keep your life insurance policy intact, you can borrow from the cash value or do a partial surrender. Please contact your agent or another agent to assist you with that decision.
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Life insurance policies can be cashed out at any time. When you "surrender" a policy, you forfeit the death benefit and remove any cash value that has accumulated in the policy (less any applicable surrender fees).
Term policies typically do not have a surrender value. Other policies, such as Whole Life plans will likely have some cash value. It's also important to keep in mind any tax ramifications that cause your surrender to become a taxable event.
Finally, Peggy Mace, who provided her usual factually-accurate response above, is one of the leading life insurance experts in the Midwest.
If there is cash value, then yes. Just remember that when you cash out (also known as surrender) your policy ends and there is no more coverage in place. Also, before you receive the cash, the insurance company may take out surrender fees, especially if you surrender before a certain number of years.
If by “cashed out” you mean a permanent cash value life insurance policy (not term life insurance) is surrendered, then the answer is yes you can it cash out. But when you cash it out you have no coverage and you might have an ordinary income tax even in the surrender cash values and/or policy loans are greater than your original contributions or basis.
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If you want to take the cash out of your policy and keep your life insurance policy intact, you can borrow from the cash value or do a partial surrender. Please contact your agent or another agent to assist you with that decision.
Term policies typically do not have a surrender value. Other policies, such as Whole Life plans will likely have some cash value. It's also important to keep in mind any tax ramifications that cause your surrender to become a taxable event.
Finally, Peggy Mace, who provided her usual factually-accurate response above, is one of the leading life insurance experts in the Midwest.