Can I cash in my own life insurance policy?

Yes — but only certain types of life insurance let you cash out while you’re still alive. If your policy builds cash value, you may be able to withdraw money, take a loan, or surrender the policy for a lump sum.

Let’s break it down.

✅ Policies You Can Cash In

Only permanent life insurance comes with a cash value component you can access:

• Whole Life Insurance

• Universal Life (UL)

• Indexed Universal Life (IUL)

• Variable Life Insurance

• Final Expense Insurance

If you own one of these, you likely have funds growing inside your policy.

❌ Policies You Can’t Cash In

If you have term life insurance or accidental death insurance, these don’t accumulate cash value. You can’t cash them out — they’re meant only for the death benefit.

💰 Ways to Access Your Cash Value

1. Policy Loan
   Borrow money using your cash value as collateral. No credit check, low interest.

2. Withdrawal
   Take out a portion of the funds. Keep in mind, this may reduce your death benefit.

3. Surrender the Policy
   Cancel the policy and receive the full cash value — minus any surrender fees.

🧠 Should You Cash It In?

✅ Yes, if you:

• Need emergency funds

• Want to supplement retirement income

• No longer need the coverage

⚠️ But be cautious — cashing in may cause:

• Tax consequences

• Loss of coverage

• Lower death benefit for beneficiaries

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