Life insurance is an important part of our financial plans can caring for loved ones. There may be a time when one start to look at whether one should I cash out of my life insurance?
There is a cash value that builds up over time in both whole life and universal life insurance. Term life insurance does not have a cash value that builds up.
Cach value often does not really start building to the later parts of a policy. If a person decides to surrender their policy, that means to cancel it. Depending on the policy rules, the owner will receive the policy’s cash value after any fees or costs have been taken out. Sometimes there are penalties for cancelling, and this eats into the cash values.
There is a more significant concern, however. Why do you want to cancel the policy? Has your need changed? Is there still a need to cover funeral and estate costs in your life? Perhaps you think you just do not have options? I am here to let you know that you have options. Let’s talk about those options.
What questions do you have about life insurance?