Benefits

• Surrendering your whole life policy gives you cash that you may need now. If you no longer need your whole life policy, you can also stop paying premiums and use that money for some other purpose.
  
  

Drawbacks

• You lose a valuable policy. Whole life insurance will be with you for your entire life if you pay the required premiums. However, surrendering the policy leaves you without a burial fund and triggers income tax due on any cash value gains you realize in the policy.
  
  

Considerations

• Make sure that surrendering the policy is in your best interest. Consider any potential tax due on any gains in the policy (any amount of money over the premiums you've paid).