Can You Cash Out Life Insurance? 
Yes , however , there are a number of things to consider before deciding whether to cash out any life insurance policy . One of the things that most people do n't think about is their insurability , especially when they have an existing plan . They may have preferred rates at the time they got it , but are now being treated for some medical conditions -LRB- heart issues , diabetes , cancer , etc. -RRB- and may be looking at standard or substandard rates on a new plan if they decided to get coverage again later on . If you 're looking at securing new coverage / replacing the old policy , you should compare the two structures and make sure it 's the most favorable course of action for you . Another item to review on the policy before cashing out is whether there are still any surrender charges on the policy and whether there would be any taxable gains -LRB- the cash value is greater than the sum total of premiums paid into the policy -RRB- - these 2 items can affect how much money you actually receive if you cashed out the policy . I highly recommend consulting with an experienced insurance broker who can review all of these points and others with you so you can make sure it 's an optimal move for you . After all things considered and you still want to cash out the policy , you can call the carrier/contact your agent and tell them you want to terminate the coverage -LRB- the amount you receive would be less any surrender charges or loan fees , if applicable -RRB- and they 'll send you the necessary paperwork Depending on the size of the cash out , an option to consider would be putting the money into an annuity to guarantee an income for the rest of your life -LRB- or for a fixed number of years -RRB- . I hope the information is helpful - please feel free to contact me for help and if you have any questions . Thanks very much . 