1. 3998 POINTS
    Matt BenorePRO
    Founder, DenverWest Insurance Professionals, Inc.,
    Without knowing what your goals are I would tell you to never Cash-In your Whole Life policy.
    If you have cash value built up within the policy, you can pull that money out, tax-free, as a loan to supplement income, retirement, buy a new car, etc. You may want to pay back the money you take out on your own terms however it is not required.

    Keeping the policy in force will keep the death benefit in tacked which will pay to your beneficiaries upon death.

    I would recommend talking to your agent/broker to help you decide the best options are when you retire.
    Answered on October 6, 2014
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®PRO
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Surrendering a whole life policy was a popular idea. It promoted the idea that a life policy was flexible life insurance to meet final expenses and any additional income the surviving spouse might require. The key though, is that you should surrender the policy when you know what you will need in the future and what you don’t any longer need.
    Answered on October 6, 2014
  3. 21750 POINTS
    Jim WinklerPRO
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! I'm not really sure what your motives are for cashing it in ("surrendering"), but there are definitely some things you want to think about first. What protection will you have if you do surrender it? Will you be left uninsured, or put into a position where finding a policy that is as affordable as the one your dropping is unreasonable? If so, maybe keeping the policy is a better idea. Is it just that you need a smaller premium, or some quick cash? If so, maybe reducing the face value is a better idea - the premium would be less, and you would still have coverage. If quick cash is the need, perhaps a policy loan would be better, all you have to do is find out from your agent how much is safely available to borrow from the policy, and keep the policy active. I hope this helps, contact me if you need help, okay? Thanks for asking!
    Answered on October 7, 2014
  4. 113 POINTS
    Brandi Jo Newman
    Founder, BrandiJoNewman.com, Texas
    Never.

    It's dumb to cash out a policy. You waste much more than you think when you cash out.

    The death benefit allows you spend everything else you've saved up.

    If the policy is all you have then take loans until you have no more cash value. Much more cash flow that way than just cashing out.
    Answered on October 14, 2014
  5. 375 POINTS
    Matthew Schmidt
    Diabetes Life Insurance Solutions, USA
    There is no correct answer here. Everyones situations are different. If a person feels they do not have a need for the insurance, does not want to keep paying for the insurance, then maybe you should "cash out".

    However, doing so does away with the death benefit. Another solution may be to look at the amount of cash value, and see how much "paid up " insurance you could obtain.

    Before making any decision, really think it over and make sure you no longer need the life insurance.
    Answered on August 29, 2017
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