This happens when you withdraw the full cash value available in your policy. If you want the money and no longer need life insurance coverage, you can surrender your policy and receive what's called the cash surrender value, some of which may be taxable. Just be aware that if you surrender your policy within the first few years, the fees you have to pay may cost more than the value you're taking out. You also won't have life insurance coverage any longer, so make sure you have a plan in place.