How Do You Cash In Your Whole Life Insurance Policy? 
For sure , it is a simple procedure . Call up your insurance company and ask for the right form . There you go . But : as with any major decision , you should first assemble a team of advisers and make sure all bases are covered the way they should be . You do not want this move to backfire on you . First of all , talk with the beneficiary of the policy . Once you cash it in , there will be no survivor benefit . Nothing . Is that OK ? Are you self-insuring with some other liquid funds ? Will the exact amount of money needed be there when it is needed ? All cash needs met ? Debts can be paid off ? How about money for the future ? Kids will be OK ? Grandkids ? Your business ? Charitable gifts taken care of ? Lots to think about before you wipe out the death benefit . Then talk with your insurance broker . Talk about the possibility of your getting coverage later , should you need it again . What would the pricing be like ? Of course , you should be given only the most general of answers . You will be older , so the price , of course , would be higher ... ... assuming that you are insurable . And your broker should make it clear in no uncertain terms that you may unfortunately not be eligible for coverage at a later point . You may have a serious medical condition . You may take up an adventurous hobby . You may have a job that requires travel to hazardous places . Any number of changes could take place that would disqualify you for coverage , or drive the price up . A lot . Dont forget that . Dont take your insurability for granted . It is not prudent to assume you will be able to easily pick up a cheap policy . You should also talk with your accountant or tax advisor . Depending on how you have funded your life insurance policy , all or a portion of the surrender value may be taxable . You need to know that before you accept the check . You do not want to get hit with an unexpected tax bill , especially if you have counted on all the money for a specific purpose . There you go . Surrendering your life insurance is as simple as completing a form . But it really is not so simple . 