What can a life insurance policyholder expect as a requirement for giving up their policy for cash?

A life insurance policyholder looking to give up their policy for cash would typically need to complete a viatical settlement agreement. A viatical settlement allows individuals with life insurance policies to sell their policies for a lump sum cash payment before they pass away, usually to someone who is terminally ill or has a critical illness.

The process usually involves an assessment of the policy and financial condition of the policyholder, which is formalized in the viatical settlement agreement. This agreement outlines the terms of the transaction, including any disclosures required by law, the amount of money the policyholder will receive, and the obligations of all parties involved in the agreement.

Options such as the involvement of family members or evaluating the policy's performance over time do not typically constitute requirements for cashing out a policy. These factors may influence a policyholder's decision but do not form a part of the formal requirements for a viatical settlement. Likewise, while a policy may accrue benefits, this is inherent to its function and does not directly correlate with the process of giving up the policy for cash.