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Yes, a spouse can cash out their own life insurance policy in most cases. There may be some restrictions within the initial policy so this is an individual case basis.

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Q: Can a spouse cash out life insurance policy without spouses signature?
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Can your spouses employer or spouse remove you from a family insurance policy without your knowledge?

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In the state of New Jersey can a husband take his wife off of his life insurance policy as beneficiary without her knowledge or signature?

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