HOW TO Cash OUT Life Insurance?

[Start-Living]

HI,
I need help...pretty clueless about these stuff

BF have a life insurance at work for 2.5 years now, it's the whole life policy and I think there are some money build up in it.

Now, we're switching Insurance. We're switching to TERM insurance with a a different compnay instead.

My question is, HOW DO WE GO ABOUT CASHING IN HIS LIFE INSURANCE? and then CANCEL his life insurance?.

He said he's going to CANCEL it, but once we cancel it, will we still able to get the money that's build up in his life insurance? or will the whole thing just disappear? Or, do we have to pay some fees? (very clueless about these stuff)

I look over his Whole Life Insurance, and this is what I see: (I have NO idea what any of these means) any help/advice will be great. THANKS


BENEFIT SUMMARY AS OF 3/1/06

SPECIFIED AMOUNT:* $100,000 (Includes Account Value)
ACCOUNT VALUE: $622.90
SURRENDER CHARGE: $1,859.40
POLICY DEBT: $0.00
SURRENDER VALUE: $0.00


INTEREST RATE SUMMARY
Annulized Interest rate on borrowed portion of account value: 4.00%
Value: as of: 3/1/05 4.50%
Value: as of: 3/1/06 4.50%

NEXT POLICY YEAR
The net surrender value of your policy WILL maintain the insurance in force until the next policy annual anniversary using the guaranteed interest. mortality, and expense loads and the continued payment of current periodic premiums.

[Telephus44]

I have a whole life policy, but I am unclear as to the difference in your statement between "account value" and "surrender charge." I'd have BF check with his HR dept.

And I believe that when you cancel the policy, they automatically give you the $$ - you don't have to have a separate request for the cash. I know that you can borrow against the value without canceling the policy, but I believe that you have to cancel the policy in full to just get the cash.

I just double checked my policy and there are no fees for canceling/cashing out, but I'm sure that varies from insurer to insurer.