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Is It Possible To Cash Out An Employee Life Insurance Policy Please Read Below-important To Question?

Term Life Insurance & Whole Life Insurance Discussion

Is It Possible To Cash Out An Employee Life Insurance Policy Please Read Below-important To Question?

Postby Sguelaiche » Wed Oct 04, 2017 12:06 pm

Here's the deal - our company just laid off our entire department (outsourced us). I just noticed in my "total compensation statement" that I supposedly have about $1500.00 cash value of my employer life insurance policy. My question is - since this life insurance is part of my TOTAL COMPENSATION - i.e. it is supposed to be mine because, after all, they have included it in the total compensation statement - would I be able to cash this 1500.00 out before I leave the company? Or will this just be surrendered back to the employer? (Seems to me, again, that since it's part of MY "total compensation," that cash value should be mine - BUT of course I don't know how these things work.) Thanks!
Sguelaiche
 
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Joined: Wed Jan 22, 2014 1:17 am

Is It Possible To Cash Out An Employee Life Insurance Policy Please Read Below-important To Question?

Postby Ulfhrafn » Fri Oct 06, 2017 2:47 am

The chances that you can 'cash' this out, are slim.


Here's why:

1.
The vast majority of group life insurance policies are TERM policies - odds are really good, that you are misreading that statement.
it's much more likely that they are "valuing" the policy at that much, or that your death benefit is that much.


2.
Unless the policy is in your name, YOU are not the owner, therefore, you cannot 'cash it out' even if there is a cash value to it.
You can't cash out a policy when you are not the owner, and don't control it.

If you have the actual policy, if it was mailed to you, if you pay the premium for it every month, it's yours, and the cash value belongs to you.
If you are only the insured person, it's not your policy.
Ulfhrafn
 
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Joined: Tue Mar 11, 2014 7:02 am

Is It Possible To Cash Out An Employee Life Insurance Policy Please Read Below-important To Question?

Postby Ruffe » Sat Oct 07, 2017 5:22 pm

Your total compensation is everything that company pays for you.
The "total compensation" related to your life insurance policy is what they paid for the life insurance NOT the value of the life insurance.
Now you are no longer an employee, so they are no longer paying for your insurance and it goes with the rest of your compensation.
Ruffe
 
Posts: 44
Joined: Fri Feb 21, 2014 10:28 pm


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