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If you have a permanent life insurance policy that has accumulated cash value, then yes, you can take cash out before your death.
Life insurance policy owners are allowed to withdraw some or all of the cash that is in the cash value portion of their permanent life insurance policies. By withdrawing only some of the cash, the policy owner would be making a partial surrender or a partial withdrawal.
You can cash out a life insurance policy. How much money you get for it will depend on the amount of cash value held in it. If you have, say $10,000 of accumulated cash value, you would be entitled to withdraw up to all of that amount (less any surrender fees). At that point, however, your policy would be terminated.
Taking a withdrawal from the cash value portion of the life insurance policy is another option. This is also known as a partial surrender. Unlike a loan, a withdrawal will permanently reduce the death benefit, but there are no interest payments as there are with policy loans.
*You can access the cash value in your policy, generally tax-free, via partial surrenders and policy loans. Policy loans and surrenders reduce the policys cash value and death benefit. Loans also accrue interest.
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Withdrawals may be subject to ordinary income taxes and, if made prior to age 59, may be subject to a 10% IRS penalty; Surrender charges may also apply.
Partial withdrawals are allowed only if the Life Assured is at least 18 years of age. The minimum and maximum amounts that you can take out may vary with each policy and across insurance providers. However, the maximum withdrawal in a policy year cannot exceed 20% of the total fund value.

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