When Should You Cash In A Life Insurance Policy? 
If you have Term Life Insurance , there is usually no cash value to cash in -LRB- unless you had Return of Premium Term Life Insurance , in which case the premiums will be refund if the policy was kept for the entire term -RRB- . If you have a Whole Life or Universal Life policy , you may not want to ever cash it in . Whole Life , and Universal Life -LRB- if the policy was guaranteed not to lapse -RRB- are permanent policies that you can hang onto for the rest of your life , if you wish . 