How can I cash in a life insurance policy early?
How can I cash in a life insurance policy early?
I realize this may not be possible. My dad got a life insurance policy on me when I was in college that he has been paying for 16 years. He has terminal cancer now and has given the policy to me. I already have plenty of coverage. Is there a way I can get any of the money my dad paid back from the insurance company? This isn't born out of greed; I'd like to get my dad's money back to him. I am not clear on how life insurance works and realize this may not even be a possibility.
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7 Responses
1.31.2010
Wrong….wrong…and WRONG!!Nobody has answered you correctly (in full). My favorite bit of non-sense comes from our resident "Top Contributor" who shows she has no license or understanding of cash value policies and spits out the following drivel:"Cash in value, is usually about 10% of what you've paid in, over the years – it is NOT related to the death benefit. "I think I might want to puke! Do you work for Primerica?————————————–…The simple answer to your question:Have the OWNER of the policy call the insurer and ask for the current cash value and what the best way to get to it tax-free would be. They're there to help you. After 16 years, there should be plenty of cash value in there, assuming premiums have been paid on schedule.Good luck!
1.31.2010
your dad paid for a life insurance policy for you?then it would depend on your life situationI am assuming at his death you become the owner of the policy and can do with it as you choosegetting the money back for your dad? do you want to help him with his expenses? if you can just do that and when the time comes you can do with the life insurance as you want, cash it in for diminished value or leave it there
1.31.2010
Only the owner of the policy can cash the policy in. Cash in value, is usually about 10% of what you've paid in, over the years – it is NOT related to the death benefit. You're not going to "get his money back". You can call the company, and ask for the cash surrender value. If the policy is $100 a year, cash surrender value might be $250, and the surrender fee would probably eat all that up.
1.31.2010
Insurance is a contract. In it's simpliest form the contract is coverage for money. So, no they won't give you your money back. But some policies earn cash value. So contact the insurance company and ask them if there is any value of the policy. Please do yourself a favor and consult with an insurance agent before doing anything with this policy. Source(s): I'm an insurance agent
1.31.2010
lifeinsurance.awardspace.info – try this one. I have their insurance and, as remember, they can provide such a service.
1.31.2010
U can surrender ur policy after three year of commence date . There is sum charge has been deducted from cash value as surrender charge
1.31.2010
It depends on several things. #1, you won't get the premiums back. #2, if it's a cash value policy, you may be able to surrender the policy for the cash value, but as you know, you will then lose this coverage. Obviously, if it was a term policy, it will not have cash value – in this case, there's nothing you can do.If I were you, I'd call the policy company and see if it has any value. Be sure to ask about surrender penalties as well, although after 16 years, there shouldn't be any surrender penalties. Most last only 7 years or so.Oh, and finally: If is has cash value, consider a loan on the policy. It doesn't have to be repaid, and you can use the cash as you please. This way you get some money and still keep the coverage. Just note that it will reduce the death benefit by the amount of the loan. Hope this helps, sorry about your dad. Source(s): Employed by an insurance company for quite some time.