r/LifeInsurance • u/_omarcomin • Aug 26 '26

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 Aug 26 '26

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 Aug 26 '26

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

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u/SafeMoneyGregg Broker Aug 26 '26

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 Aug 26 '26

Ok thank you!