Can I Cash In My Insurance?

  1. 1313 POINTS
    Lenny Robbins
    Principal, LifeNet Insurance Solutions, Redmond, WA
    The cash value within a life insurance policy is one of the easiest ways to obtain cash quickly, that is within several days.  Because it is your money, there is no approval process as there would be at a bank or other financial institution.  However, unless you plan on "cashing out" as this question asks,  you will want to repay  into y our policy  to avoid lapse.  Make sure  you understand the ramifications before you take any  action.
    Answered on May 12, 2014
    flag this answer
  2. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That's a great question! You can, if you meet a couple of conditions. The first is that you have a policy that has a cash value, (term policies don't) and that it has been in force long enough to have built up some cash. Most policies won't generate any cash value for the first few years, as they are covering the cost of the insurance, but after that they will start to accumulate funds. There may be a surrender charge or fees that can eat into your amount also. A suggestion? Think it over carefully before you do, okay? Depending upon the policy there may be tax consequences, and there is the obvious lack of protection. If you'd like to discuss the pro's and con's a little more, please contact me, so I can help. thank you for asking!
    Answered on May 12, 2014
    flag this answer
  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    There is only one type of insurance policy that you can “cash in.”  That is permanent life insurance (commonly called, “whole life” insurance.)  All other policies have a specific term and coverage expires on that date.  Because death is an eventuality not a probability, cash value life policies accumulate cash to offset the cost of paying the benefit.  The company lists inside the policy the amount of this “reserve” that they are willing to exchange at any time in exchange for no longer having to pay the death claim.  That is “cashing in” your life insurance policy.
    Answered on May 12, 2014
    flag this answer
    4. Did you find these answers helpful?
    Yes
    No
    Go!

Add Your Answer To This Question

You must be logged in to add your answer.


<< Previous Question
Questions Home
Next Question >>