Who Can Cash Out A Life Insurance Policy? 
If by cashing out you mean surrendering the policy -LRB- a permanent policy which has cash value -RRB- , the owner of the life Insurance policy has the only authority to do so . If the policy is lapsed by not paying any premium , then there really is nothing to surrender . A word of warning ... if you do cash out or surrender the policy be aware this may cause a taxable event . 