Can You Cash In Whole Life Insurance? 
You most certainly can , so long as you have not borrowed more than its value . However , why would you when you can easily just borrow against its value and gets the vast majority of its value that way and a tax free loan , which you never have to repay . If , however , you were to choose to close out your policy -LRB- cash it in -RRB- , any money you had already borrowed , along with any money you would get in excess of what you had paid in , would be fully taxable to you as ordinary income . Ouch . Not a wise move . You should consult with your insurance agent . Thank you . GARY LANE . 