Deciding whether to cash out your universal life insurance policy is a significant choice that depends on your financial goals and current needs. While some people choose to cash out during a major financial emergency, there are other reasons this could make sense. For example, if your life insurance needs have changed, such as your children being grown or no longer needing coverage, cashing out could be a consideration.However, there are a few things to keep in mind. If your policy isn’t that old, surrender fees may apply, especially within the first few years. These fees are usually highest in the first year and gradually decrease over 10 to 15 years. Additionally, if your surrender cash value (SCV) is greater than your cost basis, the difference may be subject to income taxes. Previous withdrawals or outstanding policy loans will also reduce the amount you receive. Before deciding, it may be beneficial to consult with a financial advisor to understand the full financial implications.