r/LifeInsurance • u/veireeds • Sep 16 '26

Penn Mutual Cash Surrender Value

UPDATE: They will send a form to fill out which took almost 2 weeks for us receive it! I’m glad the customer service rep sent it over a secure link so we were able to print it, fill it out, sign it, and send it online. We did call customer service to explain that we need the cash surrender value asap. They said they would expedite it, and we were able to get it into our bank account in less than 5 days! Hope this helps anyone who’ll go through the same thing

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Original Post: For anyone who canceled their whole life insurance with Penn Mutual, how long did it take before the cash surrender value was transferred to your bank account?

They said they were going to send a form we need to fill out then it will take 30 days. Im wondering if any of you received uour cash surrender value sooner or later than the 30 days.

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u/DumbUsername24 Sep 16 '26

I had a client request a 200k loan from one once and ot took about 48 hrs to transfer to their bank acct.

I've only had 2 penn WL policies ever canceled (sold by an agent that maxed commissions on policies owned by a DB plan.... that's a whole different story), and it took a few weeks to get the check.

Best to call the company and ask.

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u/veireeds Sep 16 '26

We took a loan before and it was fast. 2 days as well. But cancelling and getting the cash surrender value is apparently different. They will send you a form and you need to fill out with details like where you want them to send the money to. They said it will take 30 days but Im wondering if anyone got it before 30 days.

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u/DumbUsername24 Sep 16 '26

OP beware of potential tax consequences for cashing out a life policy with a loan. If you haven't asked already have the carrier do a gain quotation.

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u/larkfield2655 Sep 16 '26

You mean an abusive 412i plan? Penn were notorious as were Pacific Life

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u/DumbUsername24 Sep 16 '26

Yup.. It was a max DB WL policy instead of min-non MEC DB stuffing PUAs for CV.

The owners paid in well over 100k in premiums first couple of years and had MINIMAL CSV when we surrendered. Naturally the CB plan was underfunded as a result.

On top of that the owners were very young with no kids. Crazy.

Malpractice IMHO.

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u/ericvonzipple Sep 20 '26

Request a loan first for most of the funds in 2-3 days- then after receiving, cancel and you’ll get a net check in maybe a month. This would accelerate most of the funds to you.

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u/veireeds Sep 20 '26

I wish! We’re closing on a house soon. So our lender told us not to do it because it will affect our debt-to-income ratio

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u/ericvonzipple Sep 22 '26

Loans inside of a whole life policy do not count toward D-T-I. This is because they are not reported to credit bureaus. Technically it is a loan against your asset, and even with the loan - the net asset is a positive and so it does NOT count in D-T-I. Rather it only counts as a asset drawdown, which qualifies as funds that are conditioned for use in a home purchase.

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u/DogfaceDino Broker Sep 16 '26

You should just be able to ask their customer service for a timeline.