1. COO and Senior Agent, Outlook Life, All 50 States
    Yes, you can surrender a life insurance policy at any time. If you have a policy with cash value, there will most likely be a surrender charge during the first years of the policy. This charge will be taken from the cash value, and then you will get the remainder of the cash value, if any. If you surrender term life insurance, there is no cash value, so your coverage will simply end.
    Answered on December 4, 2013
  2. Jim WinklerPRO
    CEO/Owner, Winkler Financial Group, Houston, Texas
    Great question! It is almost always better to surrender a policy instead of just stopping payments and allowing the policy to lapse. By surrendering it, you can retrieve all or most of the cash value in the policy. Be aware that term policies have no cash value, so there is nothing there to get back. Once you have surrendered the policy, you lose all coverage that the policy had provided, so be sure that your new policy is in force first, okay? Any questions, please contact me. Thanks for asking!
    Answered on April 16, 2014
  3. Gary LanePRO
    Licensed Insurance Agent, Gary Lane, California
    You certainly can surrender a policy for its cash value, but then you have no life insurance. It would be much better for most folks to just borrow money from their policy and either pay it back or not. With a surrender, you will have to pay tax, but with a loan you will not, even if you do not pay it back, and you would still have a smaller but existing life insurance policy. Pay it back later and the death benefit returns automatically to the full amount! Call me, Gary Lane, Agent, New York Life, 949 797 2424. Thanks.
    Answered on December 6, 2013

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