What happens if I cancel my policy? Do I lose all my money?

If you cancel your policy, the amount that you would get back would be your accessible “cash value” inside of your investment account at the time of cancellation. As you may recall, you are only able to access a certain percentage of your cash account that increases in percentage until year 10 or year 15 (depending on the life insurance company) called the surrender period. After the surrender period, you will be able to cash out your entire cash account if you cancel your policy tax-free and penalty-free, as long as you have saved within the MEC guidelines for your policy.