7 Ways to Utilize Your Life Insurance Policy’s Cash Value

If you no longer need life insurance, don't just cancel the policy and cash out. Instead, consider one of these strategies to capitalize on its value while minimizing taxes.

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Permanent life insurance policies—like universal, variable and whole life—offer more than a death benefit. Some include cash value, which is a pool of money you can use while still alive.

If you’ve had a policy for years, the cash value could be considerable. “The accumulation could be more than you put in, and this opens up all kinds of options,” says Jonathan Howard, a certified financial planner with SeaCure Advisors in Lexington, Ky.

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David Rodeck
Contributing Writer, Kiplinger's Retirement Report