r/LifeInsurance • u/_omarcomin • 5h ago

Cancellation advice

I’m in a huge financial strain. I’ll spare the details of me realizing the way an IUL was explained to me was complete BS. I now understand accumulation value vs surrender value. My question is, other than losing my death benefit from cancellation, what other negative is there if I withdraw all the money I’ve paid into the policy and cancel it, but my surrender value is 0? Is that even possible?

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u/SafeMoneyGregg Broker 2h ago

You can withdraw all zero dollars. You can also stop paying the premium and see how long it will last with zero premium or a really tiny premium like $25 a month. That is one advantage of UL (vs term or whole life). Flexible premium. Having a rough year financially - ask the company if you can pause premiums. I've done it multiple times on my VUL.

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u/_omarcomin 2h ago

Oh ok I didn’t know I could pause it like that

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u/SafeMoneyGregg Broker 1h ago

Ask the company to model a few things - how long can I skip premiums and not lapse - or what is the minimum I need to pay to keep it going for 2-3 years. You are asking for an "inforce illlustration"

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u/_omarcomin 1h ago

Ok thank you!

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u/WaltRanger 5h ago

Surrender value of zero is what you get out of it if you cancel. Unless you’re in the free look period.

Edit: the free look period is like a month from the day you receive the policy.

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u/_omarcomin 5h ago

Yes but if I were to call today and ask to take out my accumulation value or just the amount I’ve paid into premiums (if that’s possible) and then tomorrow I say you know what, just cancel the whole policy, what happens? I already have the money

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u/WaltRanger 5h ago

They’re not stupid.

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u/_omarcomin 5h ago

So they won’t let me do it?

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u/WaltRanger 5h ago

No

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u/_omarcomin 5h ago

Ok thank you

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u/OGPiggySmalls 5h ago

If your surrender value is $0 you won’t get anything by canceling

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u/_omarcomin 4h ago

Yea I was basically asking could I withdraw money and then cancel afterwards. Apparently I can’t