How Can I Cash My Life Insurance Policy Out?

i have a life insurance that i would like to cancel and deposit the cash in my savings account how can i go about doing this?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    There are two types of “payouts.”  Death benefits are “settled” by settlement options.  Benefits paid to living policy owners are known as “non-forfeiture provisions.”  There are similar techniques used by both.  A beneficiary and a living owner can take the benefit as a lump sum.  They can chose to take only the interest on the money, leaving the principle with the insurance company for a later date.  They can also elect one of several distribution plans that provide for a limited series of payments to lifetime income for one or more people.  Living policyholders can also elect to accept a lower face amount of coverage in a policy that requires no further premiums. They can elect to keep the same death benefit for a prescribed period of time.  Companies can have other settlement options.
    Answered on February 27, 2014
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