Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
There is generally a form for the policyowner to complete to cash out a policy. Your agent or the carrier (generally a representative in the policyholders' department) can send you this form. The exact requirements may vary by company.
Before cashing out a policy, you want to find out whether or not there are any remaining surrender charges left on the policy.
Cashing out a policy may not always be the best course of action - talk to your agent before taking any actions to make sure cashing out the policy is the best option for you.
I'd contact your agent first - his name and number will be on your policy somewhere, and then look at a couple of things - how much is the surrender value? What if anything, will it cost me to surrender it? and will there be tax consequences if I surrender it? I'd also want to know your reason for surrendering the policy - if it is a problem with making payments, you may be able to reduce the coverage and then premiums to be affordable again; if it's for some quick cash, maybe a policy loan is an idea to consider, and if it is to close it out and reinvest that cash somewhere else, then that's something I'd look at closely also. I hope that helps, if you'd like more details, contact me, I'd be happy to go over this in more depth with you! Great question, thanks for asking!
.JPG){kind=avatar}
Before cashing out a policy, you want to find out whether or not there are any remaining surrender charges left on the policy.
Cashing out a policy may not always be the best course of action - talk to your agent before taking any actions to make sure cashing out the policy is the best option for you.