How to get cash from a life insurance policy?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

How to get cash from a life insurance policy?

My mother-in-law has been paying on a life insurance policy for the past 30 years. Her finances have increased due to my father-in-law’s death and she can no longer afford the payments for the insurance. I called the life insurance company today to tell them she is unable to keep the insurance and would like to cash it in. They told me she will get nothing back. I have a hard time believing that over 30 years of payments gives her nothing? Is that even legal? I just need to know how to proceed further.

info.

Sincerely, Gina Stout

Asked on May 1, 2017 under Insurance Law, Florida

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

What type of policy is it? If it is a permanent type of policy such as whole life or universal life there may be some cash value to recover. If, however, it is a term insurance policy there is no value so there is nothing to "cash out". That having been said, some term policies have what's called a "return of premium" rider that, if held for the contract period, can return the premium outlay to the policy owner. Some owners sell their term life insurance policies during the conversion period to the life settlement market for cash based on their life expectancy.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption