How to Cancel an AIG Life Insurance Policy and Recover Its Value

What You Should Know Before Cancelling an AIG Life Insurance Policy

If you are considering cancelling an AIG life insurance policy to access its value, the first thing to understand is that the outcome depends on the type of policy you hold and how long it has been in force. Term policies typically build little or no cash value, while permanent policies such as whole life or universal life may accumulate a surrender value you can recover. Before contacting AIG, gather your policy document, any recent statements, and a record of outstanding loans or withdrawals, because these directly affect the amount you will receive.

Step-by-Step Process to Cancel and Retrieve Your Policy Value

Non-Forfeiture Options That Can Preserve Value Without Full Cancellation

In some cases, you do not need to fully cancel the policy to access its value. AIG may offer non-forfeiture options such as reduced paid-up insurance, which keeps a smaller death benefit in force without further premiums, or a policy loan against the cash value. Extended term insurance is another possibility that converts the cash value into term coverage for a set period. Each option has different tax and coverage implications, so ask AIG for a side-by-side comparison before deciding.

Tax and Financial Considerations When Surrendering a Policy

When you cancel a permanent life insurance policy, any cash value received above the total premiums paid may be subject to income tax. If the policy has outstanding loans, those loans are typically deducted from the surrender payment and may be treated as taxable income if the policy lapses. Before proceeding, it is wise to consult a tax professional or financial advisor who can model the net proceeds after taxes and fees, so you understand the true value you will recover.

Where to Get Help and Confirm Your Policy Details

AIG provides policy lookup tools on its official website where you can locate your policy number and current status. You can also reach AIG customer service by phone or through your agent portal to request a personalized surrender illustration. For complex policies with riders or dividend options, ask for a written breakdown of all charges and credits so you can compare the surrender value against alternatives such as a 1035 exchange into a new policy.