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Look in the policy for the table of cash values. There may be TWO columns. Cash and Surrender value. If you give up the policy, you get the surrender amount. If you don't have that table in your policy or your policy is based on current interest rates - then you need to contact your Insurance Company or agent and ask for an illustration showing the cash values.

If the amount of cash is more than you paid - you pay tax on the difference. You might want to consider taking loans if you need the $$$. You might also want to consider just not paying the premium and letting the cash values pay for the coverage.

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โˆ™ 2011-05-15 09:56:39
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Q: What happens when you cash in a life insurance policy and how can you tell how much you would get for it?
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Related questions

Can you cash in a life insurance policy that is paid up?

If you have an old life insurance policy can you cash it in for cash value

How can you cash your Life Insurance policy in with Royal Neighbors of America?

I would like to cash in my insurance

How do you cash in a life insurance policy?

You call the life insurance company and get the present cash value out of the policy. The policy will then be divested.

What happens to my paidup additional life insurance if I cash in my policy?

The paid up life would have it's extra cash value too, so if you cashed it in for the cash value, there would be no more paid up life either.

What happens to the cash value of a life insurance policy when you die?

Pays out to beneficiary-just the value of coverage not cash value if sold.

Can you drawn funds from life insurance policy with United Investors Insurance Company?

If the policy that you have with United Investors is a whole life policy and has accumulated cash value then you can take a policy loan against it. And then you would pay that money back plus interest which is basically like paying yourself back. Or you can cash in the life insurance policy and take the cash value with you

What is the cash value in an insurance policy mean?

The cash value is the amount of money your insurance policy is worth to the owner of the policy if the insurance is cancelled and the policy terminated. The insurance company will mail a check to the to the policy owner upon policy termination or cancellation by request of the owner. I would strongly encourage you to consult a professional in your area before cancelling an existing policy. There may be other options and alternatives to access the value of the policy without cancelling the insurance policy.

If I surrender a universal life insurance policy what happens?

If you surrender it you are in effect canceling the policy. They will issue you a check for the cash value in the insurance and you will no longer have the protection. Alternatives? Maybe take a loan on the cash value which you would have to pay back. If you are over 52 you should look into selling the policy as you will get more than the cash value. I can help you with that. In any case I caution you on losing a policy like this, consider carefully. 4LifeGuild

How do you cash in a life insurance policy from 1987?

It depends on what policy it is. If it was a whole life policy for which all premiums were paid promptly as agreed in the policy document, then Yes, you can cash it in after the death of the policy holder. For any other type of insurance policy, I would assume the policy has expired or lapsed by now since we are nearly 25 years ahead from 1987. So, in that case you cannot cash in the policy.

What happens if someone forge your signature to cash a life policy?

Report the forgery to your local policy department and the insurance company and you will probably be made whole.

Can your dad cash out your life insurance without your permission?

Your dad can withdraw the cash value of your life insurance policy if he is the policy owner of your policy. If you have obtained adulthood, you dad cannot withdraw the cash value of your life insurance policy without your consent. If you are minor life assured, your dad as proposer can draw cash value on maturity,provided you will not be adult then.

Are cash values available on a paid-up insurance policy?

You can cash it in.

How do you cash in life insurance policy from gulf life insurance?

How do I cash in an old gulf insurance policy

Can you cash out term life insurance?

If you have a permanent type of policy such as whole life or universal life there may be some cash value to recover.If it is a term insurance policy there is no cash value so there is nothing to "cash out".

Would money theft be covered under homeowners insurance policy?

No, Cash, bullion, stocks and bonds and other negotiable paper are excluded from a homeowners insurance policy.

When a life insurance policy is cancelled and the insured selects term nonforfeiture the cash value of the policy will be used to purchase term insurance what happens to the face amount?

face amount reduces and the policy is made for paid-up value

Can you sell a 20 year term life insurance policy which has no cash value?

Can you sell a 20 year term life insurance policy which has no cash value

Can a paid up insurance policy be cashed?

Yes, if there is a cash value in the policy is can be surrendered for that cash. BUT, it is paid up. Why would you cash it in ? It does not cost you anything from this point going forward to be morally responsible. Perhaps a policy loan may be the option.

If you let a life insurance policy lapse and then later have it reinsted how long do you have to wait before you can sell that life insurance policy?

What do you mean "Sell" the life insurance policy? Once it is back in force and you are the owner, you can cash it in at any time if there is in fact a cash value. I guess you would have to better define what you mean by selling it.

Does your policy have cash value?

A life insurance policy may have cash value if it is a "whole life insurance policy". This is a kind of life insurance, distinguished from "term" life insurance, that accumulates cash value for the period that it is in force and premiums are paid. Each premium paid goes to pay the cost of "indemnity" (the death benefit), the administrative costs incurred by the insurer, with all or a portion of the remainder going into the cash value. The cash value element of the policy is SOMEWHAT like a savings account within the policy. It grows slowly at first but faster as the policy matures. When a sufficient amount of cash value has accumulated, policy loans from the cash value are usually allowed per the terms of the policy. The loans bear interest at a rate provided for by the policy. Term life insurance does not accumulate cash value.

What happens if your policy expires before you die?

If your policy is a term insurance plan, nothing happens. The coverage ends when you stop paying and there's no further benefits. It's similar to auto insurance. If your policy is a permanent plan with cash value, there may be income tax ramifications. If your cash in the plan grew, you may receive a form 1099 from the insurance company indicating a taxable gain. This growth in your cash value may not have been reportable income if the policy hadn't lapsed. If your policy expires before you do, there is no death benefit payable to the beneficiaries of the lapsed contract.

What would your 2500 life policy by worth if you got it in 1952?

If the policy was a term life insurance policy and presuming that you paid all premiums and the policy did not lapse for non-payment, it would be considered to be "fully paid-up". Therefore, upon the insured's death, the insurance company would be obliged to pay the face value of the policy. If the policy was a "whole life insurance policy", cash value would probably have accumulated so it may have more value ($2500 plus the accumulated cash value). A definitive answer cannot be given without reviewing the policy.

How do you find out the cash surrender value of a physicians life insurance policy?

There is generally not a special form used for a life insurance policy issued to a physician. That said, if you are concerned with the cash surrender value, a whole life insurance policy (rather than a term life insurance policy) is implicated. The cash surrender value changes (usually increases) as the policy matures. The amount of the cash surrender value is shown on a schedule on the declarations page of the policy. The declarations page is one of the first pages of the policy which identifies the insured, the policy number, the amount of policy benefits and other information.

If you cash in a life insurance policy do you have to pay taxes on it?

"Insurance and Taxes. No. All proceeds or withdrawals from any insurance policy are not taxable." This is not true. If you cancel a life insurance policy, the growth on the cash value IS TAXABLE. If you do not surrender your policy, the money is taken as a loan and therefore not taxable, but interest that has to be paid back to the insurance company grows.

Can the actual cash value of an extended term life policy be liquidated by the insured?

no there is no cash value in a term insurance policy