Accessibility Menu A- A A+
We proudly offer the convenience of one stop shopping!
Skip Navigation
The Dollar 3125419 640

Cashing in a Whole Life Policy

As life progresses, an individual’s insurance needs also evolve. There may come a time when you need cash and will consider cashing in your whole life policy. You don’t have to sell the policy to obtain cash if you have a terminal illness through the predatory practice known as a viatical settlement. If you need cash, you have other options for multiple situations.


With a cash-value policy, you’ll typically be able to borrow against the life insurance policy. You’ll essentially be using your policy as collateral for the institution making the loan. It may also have interest attached to the loan that you could be liable for out-of-pocket. If you fail to pay the loan, the amount will be subtracted from the death benefit amount. There will also be maximum loan amounts that you can take.


A whole life policy that you’ve had for several years will have accumulated some cash value. You can surrender the policy and take the surrender value, but heirs or beneficiaries won’t receive any money upon your death. It’s a decision of last resort and shouldn’t be considered lightly unless you have other coverage.


You can choose to make a cash withdrawal from the policy up to the amount of premiums you’ve paid over the years and the money is usually tax-free. Withdrawals in excess of that amount will be taxable at your normal rate of income and reduce the amount of your death benefit. You may also be subject to penalties for an early withdrawal if you’re under the age of 59.5 years.

Paying Premiums

If you find yourself short on cash and having trouble paying your premiums, you can stop paying them until your financial situation is back on track. You might be able to use the accumulated cash from the insurance policy to pay the premium.

For more information about how The Sena Group can help you with any

of your insurance needs, please contact us at 561-391-4661.

We can be found on Social Media at the following links.


The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487