Understanding Funeral Policy Cancellation

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Whole Life Policies and Cash Value

Most funeral policies are considered whole life insurance policies. This means they provide coverage for your entire life and have a feature known as cash value accumulation.

Cancellation and Cash Value

When you decide to cancel your funeral policy, you’re typically eligible to receive the policy’s accumulated cash value. This is often referred to as the surrender value.

Factors Affecting Cash Value

  1. Policy Duration: The longer you’ve held the policy, the more cash value it tends to accumulate.
  2. Policy Terms: Specific terms and conditions of your policy can affect the cash value.
  3. Premium Payments: Regular and timely premium payments contribute to higher cash value.


  1. Policy Held for 5 Years: A policy held for a shorter duration, like five years, may have a modest cash value.
  2. Policy Held for 20 Years: A longer duration, such as 20 years, typically results in a significantly higher cash value.

Key Points to Consider

  • Surrender Fees: Cancelling a policy might involve surrender charges, reducing the net cash value received.
  • Policy Review: Always review your policy details or consult your insurance provider to understand the exact cash value.

Funeral Policy Cash Value Accumulation

Policy DurationEstimated Cash Value GrowthNotes
5 YearsLowEarly cancellation fees might apply
10 YearsModerateBalanced growth in value
20 YearsHighMaximum value accumulation


When canceling a funeral policy, you can receive the accumulated cash value, which varies based on how long you’ve held the policy and its specific terms. It’s important to consider potential surrender fees and consult with your insurance provider for accurate figures. By understanding these aspects, you can make an informed decision about your funeral policy.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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