How To Withdraw Cash Value From Life Insurance Policy?

  1. 1313 POINTS
    Lenny Robbins
    Principal, LifeNet Insurance Solutions, Redmond, WA
    Generally, you can simply call the insurance company customer service line and they will help you.  Make sure you understand how this withdrawal will affect the policy lapse provisions by asking for a current illustration for before and after a contemplated move.  You should also speak with your agent to make sure you understand the risk, if any.
    Answered on March 24, 2014
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  2. 10968 POINTS
    Tim Wilhoit
    Owner, Your Friend 4 Life, Brentwood TN
    First be sure you have a cash value life insurance policy. For example a whole life, universal life, indexed universal life or variable life, but not a term life which has no cash value. Locate in your policy the illustrations page. Depending on the years of accumulation you will see the cash value of the policy. You may "borrow" against the cash value at a very low interest rate and keep your coverage in force. Or you may cancel your coverage and receive the full cash value amount which is income tax free in most cases. Simply, call the insurance company and ask for the proper form to be sent to you in order to execute the transaction. However, before doing the later, be sure to have alternative coverage in place unless you are fortunate enough not to have a need for life insurance in the future.
    Answered on March 24, 2014
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