When To Cash In Whole Life Insurance Policy? 
Are you seeking to cash in your policy now because the coverage is no longer needed , you can no longer afford the premiums or you need the cash now ? In general , you need to hold you policy a minimum of 15-20 years in order to have achieved a gain or return on your money that matches conservative returns today -LRB- ~ 5-6 % -RRB- . Surrendering your policy before then essentially creates or causes a less than attractive return on your premium dollars for that cash accumulation feature . If you are struggling to afford your premiums but do have a significant amount of cash value , surrendering your policy is not necessarily your only option . You can set your WL policy dividends to off set your premium costs rather than buying paid up additions . Depending on the age of your policy , the dividends may be significant enough to pay the premium in its entirety . Additionally , you can use an Automatic Premium Loan -LRB- APL -RRB- which automatically borrows from the cash value to cover your premiums annually . This of course , will reduce your policy face value with each loan but is a way to preserve some sort of coverage in the event that you are no longer able to afford it . Lastly , depending upon your age , you have the separate alternative of selling your life insurance policy to an investor in an transaction called a `` Life Settlement '' . The offers that policy owners receive , depending on certain parameters , are multiples of the policy 's cash value . You can read more about this through the Life Insurance Settlement Association -LRB- LISA -RRB- WEBSITELINK Please contact me if you would like more information about a life settlement . 