Can I get money back if I cancel my life insurance? (cash surrender value)
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
Possibly — through the cash surrender value, if your policy is one that builds one. RA 10607 (the Amended Insurance Code) requires the standard provisions of a life-insurance policy to include non-forfeiture benefits: a cash surrender value and a table showing, in figures, the cash surrender values and paid-up options available. A whole-life or endowment policy typically starts accumulating a cash surrender value after several full annual premiums have been paid, and you can surrender the policy for that amount or take a policy loan against it. Pure-protection term insurance usually has NO cash surrender value, so cancelling it returns nothing.
Check your policy's non-forfeiture table: it lists, per policy year, the guaranteed cash surrender value and the paid-up / extended-term options. Surrendering ends the coverage in exchange for the cash value; instead of surrendering, you can often take a loan on the security of the policy (up to the cash surrender value, at the policy's stated interest). If you are only unhappy with the policy shortly after buying it, ask whether a 'free-look' cancellation period applies for a fuller refund. If the insurer refuses to pay a cash surrender value your policy clearly provides, that is a dispute you can bring to the Insurance Commission.
Primary sources
Frequently asked
Does every life policy have a cash surrender value?
No. Cash surrender value builds up in policies with a savings element — whole-life and endowment plans — typically after several full annual premiums. Pure term insurance is protection-only and normally has no cash value, so surrendering it returns nothing. Read your policy: RA 10607 requires it to include a table of cash surrender values and paid-up options if it has them.
How do I know how much I'd get back?
Look at the non-forfeiture / cash surrender value table in your policy, which shows the guaranteed value for each policy year, or ask the insurer for a current surrender quotation. RA 10607's standard provisions require that table to be in the policy precisely so you can see, in figures, what the policy is worth if you stop.
Is surrendering the only way to get value out?
No. You can usually take a policy loan against the cash surrender value while keeping the policy in force, at the interest rate the policy states. That leaves your coverage intact, unlike a full surrender which ends it. Compare the two before cancelling — surrender is irreversible for that policy.
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