Can Life Insurance Policies Be Cashed Out? 
Life insurance policies can be cashed out at any time . When you `` surrender '' a policy , you forfeit the death benefit and remove any cash value that has accumulated in the policy -LRB- less any applicable surrender fees -RRB- . Term policies typically do not have a surrender value . Other policies , such as Whole Life plans will likely have some cash value . It 's also important to keep in mind any tax ramifications that cause your surrender to become a taxable event . Finally , Peggy Mace , who provided her usual factually-accurate response above , is one of the leading life insurance experts in the Midwest . 