Yes, you can cash out or what your referring to is surrendering the policy. Before you do, I would recommend that you consider a couple thoughts.
First, if you surrender this policy, you will no longer have life insurance. Are you planning on replacing this policy? Consider this carefully.
Second, depending on how long you have had your policy, you might get some cash value paid to you. If there is a lot of growth, you may have to consider the tax consequenses as if you get back more than what was paid into the policy, the difference will probably create a tax burden.
There are options other than surrendering a policy if you want the or need the cash value. Consider taking a loan or just withdrawing the cash value.
In either case, please consult with your agent or broker to review all your options and any consequenses
Yes, you can cash out a universal life insurance policy. If you have one of the original UL policies that were not guaranteed, and is now using your cash value to supplement the premium, you may find cashing it out and getting a new policy is your best option. However, if you are no longer able to get a new policy due to health issues, or if your age is making premiums very high for a new policy, you may be able to adjust your current Universal Life policy to make it work for you.
Contact an agent you trust to evaluate your present policy, find you a new one, and then explain the pros and cons of keeping or surrendering your current UL policy. I am happy to help, if you'd like to contact me.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Universal life depends upon the development of accumulated funds and these can be surrendered and the policy cancelled. Because universal life does not have a fixed premium schedule, neither does it have a fixed cash value. If the plan was established to have a low deposit schedule you might find that the accumulation is not significant and in fact the policy could be facing a premature ending. Check with a trusted life insurance agent and get the straight information on your contract.
That is a great question! The answer is yes, but I'd ask you to contact your agent first, and see if this is the best alternative for you. A couple of things could be bad for you in cashing this type of policy out. The first is that you won't have any coverage, should you pass, and if you are older and in worse health than when you started it, may find it cheaper to keep it. The second is that if it built up a large amount of cash, that cash is most likely going to be taxable, and may put you in a higher bracket for the year you take it , which can be very expensive. This is really a case where maybe taking a loan out of the policy is better than closing it out. Please talk to your agent, and then decide what to do, okay? Thanks for asking!
.JPG){kind=avatar}
First, if you surrender this policy, you will no longer have life insurance. Are you planning on replacing this policy? Consider this carefully.
Second, depending on how long you have had your policy, you might get some cash value paid to you. If there is a lot of growth, you may have to consider the tax consequenses as if you get back more than what was paid into the policy, the difference will probably create a tax burden.
There are options other than surrendering a policy if you want the or need the cash value. Consider taking a loan or just withdrawing the cash value.
In either case, please consult with your agent or broker to review all your options and any consequenses
Contact an agent you trust to evaluate your present policy, find you a new one, and then explain the pros and cons of keeping or surrendering your current UL policy. I am happy to help, if you'd like to contact me.