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Life & Health Insurance/cash in on term-renewable life isuranceq


We bought policy in 1998 with banner life for a 20 yr renewable and converitible term life ins. My husband who the policy is under get laid off unexpectedly and now his daughter is very sick and had to come live with us. husband is 75yrs old and we have tryed to get the cash value that we paid so far 35,000.00 on a 100,000.00 policy, they told us we can't get it. Is there anything else we can do? hardship? We need this money to live and the cost of the premium is 209.00 a month and we can't afford that now but if we don't pay we lose it all? Can we get help? Thanks Debbie wife of policy holder and beneficiary.

Unfortunately, most, if not all, insurance companies disallow policy holders from taking the cash value on term policies. Some Whole Life policies allow for the cash value to be redeemed at any point in time, but term policies do not. Your options at this point seem to be somewhat limited. You can, like you mentioned, drop the policy altogether and save the premium each month. However, you would indeed lose the death benefit. You might also consider contacting your insurance agent or company to see if you can reduce the death benefit to a slightly lesser premium. This way, you would be able to pay out less monthly premium, but still have the death benefit in the case of a death. If you do cancel the policy, you essentially will have lost all $35,000. Try your best to stay out of that situation.  

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John Claborn


Any question on individual or employee-sponsored health insurance, Term life insurance, or Medicare questions. I cannot answer any question involving investment funded life insurance or any government-sponsored entitlement question that does not involve a private insurance company.


Our agency has over 35 years of combined experience. I, personally have been in the insurance business for 6 years. I have dealt with every type of client out there, young and old.

Texas Association of Health Underwriters Lubbock Association of Health Underwriters - Media/Communications Chair Young Professionals of Greater Lubbock Premier Networkers of Greater Lubbock (President)

Bachelor of Arts in Economics from Texas Tech University. Associates of Arts in Business Administration from Frank Phillips College.

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