Most life insurance policies come with the option to waive the premium payments on the policy if you become disabled. This is called a "waiver of premium" rider and it essentially makes a life insurance policy self-completing if you become disabled (during the time that you are disabled). If you do become disabled and the waiver of premium rider has been paying your premiums, you should consider keeping the policy for as long as you can since it's not costing you any money. However, if you find that you no longer want your policy, you can cancel it. If you do, you'll receive the full cash surrender value of the policy even though the insurance company has been making the premium payments for you.
Instructions
1. Call the insurance company and cancel your life insurance policy. The insurance company will provide you with the policy termination paperwork you'll need to file. Once you complete the paperwork and return it, the insurer will send you a check for the full amount of the policy within a few weeks.
2. Contact the insurance company and request a policy loan for the full amount of the policy. By doing this, you will cause the policy to lapse due to policy loan interest. However, you will effectively terminate the policy and you'll get to keep all of the proceeds of the policy.
3. Call the insurance company and withdraw the full amount of the cash value from the policy. This will only work if your policy is a universal life insurance policy. Whole life insurance is limited in regards to how much money you may withdraw from the policy (you may only withdraw dividends, if the policy pays dividends).
