Question: How can I get cash from my life insurance policy?

Brandon Selfors

Licensed Insurance Agent


Getting cash from your life insurance depends on two key factors: your policy type and situation.

Term life:

  • Limited options: Term policies usually don’t allow cash withdrawals unless you have a terminal illness or are over 65.
  • Terminal illness riders: Some may offer accelerated death benefits for a large payout upfront.
  • Conversion option: If over 65 and your policy is convertible, you could sell it to a life settlement provider for a lump sum.

Whole or Permanent life:

  • More flexibility: You have several options, including:
    • Accelerated death benefits: Similar to term policies, some provide payouts for terminal or chronic illnesses.
    • Policy loans: Borrow against your policy’s cash value (interest accrues).
    • Surrender: Cash in your policy for its surrender value (generally less than the death benefit).
    • Senior life settlement: For seniors, selling your policy can often fetch more than the surrender value through Life Settlement Brokers.

Remember: Consider your age, health, and policy details before making any decisions. Consulting a financial advisor or life settlement broker can help you explore your best options and maximize your gains.

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Brandon Selfors / CEO

Certified Life Settlement Broker

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