Oh come now. It’s always an option, and some even say it’s painless!
As for the OP, **Rick ** scooped me again! So, in addition to agreeing like a toad with him I’d like to clarify: If your policy is paying dividends, and especially if you elected to allow the dividends to accumulate and accrue annually compounding interest, there is a possibility that the policy is accruing dividend & interest in an amount equal to or greater than your annual premium. In English, your policy at this point might be “paying for itself” : dodges brick thrown by insurance professionals : and will require little or no more money from your checkbook. The term to drop in your life insurance guy’s lap is “premium offset.” : dodges rotten tomato :
I’m dodging because life insurance policies do not “in fact” pay for themselves, and although dividends may be paid regularly, they are not guaranteed–they are the result of good financial health of the insurer. If things go badly for the company, they might stop paying dividends for an unspecified period of time, and if that happens you will need to start ponying up money again. An asteroid can hit the earth too, and you wouldn’t want to be without insurance if that happened!
Free life insurance or cash it in (and show earned interest as earned income)? That’s the question. Before you cash in, consider that nobody EVER complains when a life insurance benefit check is delivered.