Can I Cash Out My Whole Life Insurance Policy?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Your whole life insurance policy has a table that lists the surrender value of the policy. You can “cash out” your policy for that amount whenever you wish. Contact the agent or the company and they will supply you with any forms that might be required. You might want to consider other options but that would be best discussed with your agent.
    Answered on November 6, 2014
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  2. 63333 POINTS
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    Peggy MacePRO
    Most of the U.S.
    Yes, you can cash out your whole life insurance policy. Doing so is called surrendering it, and it will give you the cash but leave you without that coverage. You could also borrow from the cash value in your own policy. Borrowing from your policy per the established protocol enables you to use the cash in the policy but still keep the death protection intact.
    Answered on November 8, 2014
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  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! A better one might be why do you want to? If you do, your policy ends, and you have no more coverage. If you have a policy through work, and are thinking of dropping this one, remember that if you leave work, most likely your coverage again ends. Life insurance costs are based upon your health and age when purchasing. So if you have had this policy for a long while, you can expect that replacing it will cost you considerably more. That said, if you are looking for some quick cash, perhaps keeping the policy and borrowing from it instead would make more sense. Your policy would still cover you, and would pay out the face value minus loan and interest amounts were something bad to happen to you in the mean time. If your heart is set on cashing it out, contact your agent, and tell them that you want to "surrender" the policy. They'll get a check to you shortly. Thanks for asking!
    Answered on November 10, 2014
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