Ha anyone ever cashed their Universal life insurance while in chapter 13? I have it under exempt for less value that it has accrued in the past three years since I files. What is the process and can I cash it without telling the court? will the life insurance company inform the court? This is a policy we took out to save for children's college and I have to pay tuition in September.
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You can cash it out any time you want. They probably won't contact the court. My advice is not to touch it. It would be classified as extra income. If you are ever audited it could cause a case dismissal. IMO Term is way better than whole life. -
Thanks, I have term insurance as well. We took this insurance as a savings for our children's college. We have been cashing it as needed. I need to pay for college for my youngest and was hoping to use the money. I will wait until my case is completed and then re-pay the loans that she has to take to complete her schooling.Comment
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