- 1). Cash in your policy. You can call the insurance company and surrender the policy. The insurance company will send you the proper paperwork necessary to cancel the policy. You will receive the cash surrender value of the policy.
- 2). Lapse the policy through loans. Since the premiums are being paid for you, you may be able to lapse the policy by borrowing from the cash value of the policy. Insurance company rules vary on borrowing from the cash values while the waiver of premium is in effect. If you borrow more than the cash value on a whole life policy, or if you borrow enough so that the interest payments will cause the policy cash values to fall below zero on a universal life insurance policy, then the policy will lapse and the policy will terminate.
- 3). Lapse the policy through withdrawals. Universal life insurance allows you to take direct withdrawals from the policy. Withdraw enough money so that the cash value cannot keep the policy in force (due to normal policy charges). This will terminate the policy with the waiver of premium rider.
previous post
next post