What Happens to Union National Life Insurance Money After 10 Years

Cash value growth after ten years

Union National Life Insurance policies that include a cash‑value component typically accumulate savings over time. After ten years, the cash value is the sum of premiums paid, interest or investment earnings, and any policy dividends, minus administration fees. This amount can be accessed while the policy remains in force.

Surrender options at the ten‑year mark

Policyholders may choose to surrender the policy after ten years. In a surrender, the insurer pays the cash surrender value, which is the cash value less any surrender charges that may still apply. The exact charge depends on the contract terms; many policies reduce or eliminate surrender fees after a decade.

Policy loans and withdrawals

Even without surrendering, owners can borrow against the cash value after ten years. Loans are tax‑free as long as the policy stays active, but unpaid interest reduces the death benefit. Partial withdrawals are also permitted, typically up to a percentage of the cash value, with possible tax implications if the withdrawal exceeds the basis of the premiums.

Maturity or end‑of‑term benefits

If the policy is a term life product with a ten‑year renewal option, the coverage may automatically renew, often at a higher premium. For whole life or universal life policies, reaching ten years does not trigger a maturity payout unless the contract includes a guaranteed end‑of‑term benefit.

Impact on death benefit

Any loans, withdrawals, or surrender charges reduce the death benefit payable to beneficiaries. Maintaining the full cash value helps preserve the original death benefit amount.

Key considerations before making a decision

• Review the policy's surrender charge schedule.
• Compare the cash surrender value to the total premiums paid.
• Assess tax consequences of withdrawals or loans.
• Consider future premium affordability if renewing term coverage.

Example comparison