How To Cash Out A Term Life Insurance?
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaGenerally speaking, term life insurance has no cash value. Some term policies have what's called a return of premium rider that, if held for the contract period, can return the premium outlay to the policy owner. Some policy owners sell their term life insurance policies during the conversion period to the life settlement market for cash based on their life expectancy.Answered on September 11, 2013flag this answer.JPG)
63333 POINTSview profilePeggy MaceMost of the U.S.To cash out a term policy, you simply cancel it, as there is usually no cash value in a term policy (unless you have ROP term). To cancel it, you can stop making payments. After a one month grace period, the policy will lapse. Or you can call the insurance company to cancel your policy. If you are paying by automatic withdrawal from a checking account, that is the better approach, because otherwise there may be a charge from the bank.Answered on September 11, 2013flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaActually, if you don’t make a premium payment, you have effectively cashed out your term insurance policy. The policy will allow you to make payments though the term of the policy but if you chose to stop making payments, the company will terminate coverage as soon as the “grace” period passes.Answered on October 20, 2014flag this answer
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