How To Withdraw Cash Value From Life Insurance Policy? 
First be sure you have a cash value life insurance policy . For example a whole life , universal life , indexed universal life or variable life , but not a term life which has no cash value . Locate in your policy the illustrations page . Depending on the years of accumulation you will see the cash value of the policy . You may `` borrow '' against the cash value at a very low interest rate and keep your coverage in force . Or you may cancel your coverage and receive the full cash value amount which is income tax free in most cases . Simply , call the insurance company and ask for the proper form to be sent to you in order to execute the transaction . However , before doing the later , be sure to have alternative coverage in place unless you are fortunate enough not to have a need for life insurance in the future . 