Asked by larahackney  |  Submitted February 05, 2017

If I cancel my husband's life insurance policy would I likely get any cash back?

He can get a $150,000 policy through his work, so we no longer need a separate policy.

Report Question Report

  Leave Answer

Sign in to MoneyTips
By submitting you agree to our Terms of Service

  Answers  |  2

February 06, 2017

If your husband's life insurance is a term plan (not Return of Premium), then the simple answer is no, there is no cash back.
Also, if it is a permanent plan with cash accumulating, then the same applies: a simple cancellation makes the policy go away and there is not cash back.

Brian | 02.14.17 @ 16:10

A simple surrender of a cash accumulating policy may have a cash surrender value. Even some Term policies are divided producing. Convertible Term may be valuable on the secondary market. Lastly some companies will prorate paid premiums.

$commenter.renderDisplayableName() | 09.20.20 @ 05:32


February 14, 2017

An individual policy is almost always more valuable than group insurance.

1) group insurance is only good for 1 year, with no certainty if it will be available next year, nor do you know at what cost.
2) You are likely paying for any amount over $50,000; at least getting taxed on the economic benefit with group insurance.
3) depending on the type of life insurance, if there has been any change in health since issued and the age of the insured there could be a benefit received by giving up the ownership of the policy. There may also be other options over surrendering it to the carrier. You should talk to an independent advisor specializing in life policy reviews. Feel free to contact me through my profile.

Brian | 02.14.17 @ 15:49

4) even Term life could have a surrender value. Talk to an independent policy specialist about your particular situation.

$commenter.renderDisplayableName() | 09.20.20 @ 05:32