I am a grandparent who owns my 16 year old granddaughter’s policy. I would like to cash this policy in as she is now covered by her parent’s. Can I do this?

  1. 3998 POINTS
    Matt Benore
    Founder, DenverWest Insurance Professionals, Inc.,
    If you are the owner of the policy then you have the authority to surrender your grandson policy.
    Even if the parents had to sign off on getting this policy you should not have any issues. I would call customer service and ask them what is the process to surrender the policy and what if any cash value is available.

    There most likely will be a surrender charge meaning if there is any cash value available, it will be reduced by the charge.
    The longer the policy is in force, the less the surrender charge will be.

    Good luck.
    Answered on April 3, 2019
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  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    The owner of a life insurance policy is the one who makes decisions about whether or not to keep the policy. The owner can also make beneficiary changes, change the mode or source of payment, or even change ownership of the policy to someone else. Many grandparents turn over policies on their grandchlidren to their grandchildren, making them responsible for future payments, or allowing them to then collect the cash value. But it up to you, as the policy owner, to decide whether to cash the policy in or make other administrative changes to it.
    Answered on June 25, 2019
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  3. 723 POINTS
    Everett Debrow, Jr.
    Principal Agent, Patriarch Associates,LLC, Opelika, Alabama
    As the owner of the policy, you can legally decide how to proceed with the policy. Besides continuing the coverage the policy provides, you have three options. They are the nonforfeiture options, and they guarantee that you will get some benefit from the premiums already paid into the policy. You can (1) get the present cash value of the policy, (2) take an amount of reduced paid-up coverage that is determined by the cash value, or (3) receive term coverage for the amount of time afforded by the cash value. The third option will automatically take place when nonpayment of premium occurs.
    Answered on August 1, 2019
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