Generally many people take the life insurance policy to secure their future life. Often most of the people want to cash out their policy, before the policy matures or the policy holder dies. There are many reasons why people might want to cash out their life insurance policy. One common reason is that money is needed in cases of emergency.
If you want to cash out your life insurance policy, you can cash out the life insurance policy by canceling it or surrendering it to the underwriting life insurance company. Here are few steps for you that will help you to cash out life insurance policy.
- Determine what type of policy you have: Review your life insurance policy to determine what type of policy you have. There are two types of life insurance policies. Term life insurance expires before the insured dies and it does not build up a cash value. Permanent life insurance provides protection regardless of insured death or not. It builds up the cash value. You must have a permanent life insurance policy to cash out life insurance.
- Contact your life insurance company to know your cash value of your policy. This is the minimum amount that you can expect to get. You can also be able to get more than this minimum amount, but less than the death benefits.
- Notify your agent, when you wish to cash out your policy. You need to notify your agent, because many insurance companies require processing time to cash out a policy. Sometimes you may have to wait for two weeks and three months to receive the payment from your policy.
- Request a cancellation form for the policy by calling customer service center of your insurance company. Many companies also provide these forms online. Check your company website and download the form.
- Fill up completely the cancellation form and check out for any inaccuracies. Sign the form in the presence of a notary when it is complete. Ensure that the form must be notarized, because a notary is licensed by the state to witness official sign. This helps to protect against fraud.
- Send a mail of the complete form to the company by using certified mail. The certified mail gives the confirmation of your mail delivery.
- Contact the underwriting company if your check has not arrived within the two to three weeks. Know when the check will arrive.
By following all the above steps you can cash out life insurance policy.