Cashing out a life insurance policy is the process by which policyholders are able to access money from their policies early. Generally, the purpose of life insurance is to provide a death benefit cash amount to beneficiaries upon the policyholder’s passing. However, cashing out on a policy early allows the policyholder themself to be able to.. Surrender. Surrendering your policy means to cash out of a life insurance policy completely. In return, you’ll get the surrender value of the cash value of your policy. However, you won’t have.
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Borrow Money. You can also tap the cash value through a policy loan. You won’t owe taxes for withdrawing gains this way. Plus, you’ll have the option to repay the money, whereas you can’t.. No. A policy that has a $50,000 life insurance benefit cannot be cashed in for $50,000. That amount can only be collected by your beneficiaries when you pass, provided you didn’t access any cash value. The money you will be able to cash in will depend on how much cash value the policy has built, which is almost always considerably less than.