Co-Founder, Coastal Financial Partners Group, California
A policy owner may cancel life insurance. The coverage will cease.
If it is a term policy, there is no cash value to cash in.
Permanent life insurance may have a cash surrender value if it has been in force for a few years. If the policy has more cash surrender value than the cumulative net premiums paid in, the difference is gain which is subject to income tax.
.JPG){kind=avatar}
If it is a term policy, there is no cash value to cash in.
Permanent life insurance may have a cash surrender value if it has been in force for a few years. If the policy has more cash surrender value than the cumulative net premiums paid in, the difference is gain which is subject to income tax.