Can you cash in life insurance in Australia, generally no for term life insurance which is most common with $500K to $1M cover costing $30 to $80 per month, as term life has no cash value, it pays only if you die or terminal illness, not cashable, unlike whole of life and endowment which have cash value but rare in Australia. In Australia, 95% of life insurance is term life inside super or outside, with no cash value, so you cannot cash in, you can only claim if you die, terminal illness 12 months, or total permanent disability if TPD included $500K, otherwise policy lapses if you stop paying premium and you get $0. Whole of life and endowment life insurance, which were common before 1990s, have cash value $10K to $50K after 10 to 20 years, which you can cash in by surrendering policy for surrender value $10K to $50K, but these policies rare now and expensive $100 to $300 per month. For example, if you have whole of life $100K cover bought 1990, cash value $30K in 2025, you can cash in for $30K surrender value minus fees. For term life $750K cover $50 per month, you cannot cash in, you get $0 if you cancel. So you cannot cash in life insurance in Australia for term life which is 95% of market, you can only cash in whole of life and endowment for surrender value $10K to $50K, otherwise you get $0 if you cancel term life.
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