Ive been paying for years for life insurance that has a cash value. Can I borrow that cash value or surrender the contract to get at that money?
Borrowing and policy surrender are available. Borrowing or partial surrendering would be the one choice because the death benefit stays in effect (minus the amount borrowed), but this is a loan that must eventually be repaid. If repayment is unlikely, theyre probably better off surrendering the policy for the cash. Ideally, they should discuss this with the agent who sold them the policy, or with an agent you are comfortable with. Always find out all of the available options before doing anything.
NOTE: The answers to coverage questions are primarily based on ISO forms generally used in Florida by most companies. However, please keep in mind that all companies forms are NOT necessarily the same. Some companies may provide broader coverage and some may be more restrictive. IN ALL CASES, THE CONSUMER MUST REFER TO HIS OR HER OWN POLICY FOR SPECIFIC COVERAGE INFORMATION.