Hi May, You can cash in an insurance policy, but you will not get back a full refund of what you paid in. Often no more than half. Now, the proceeds of an insurance policy can be used to buy anything. So if your mom keeps the policy in effect, when she dies you can use the proceeds for funeral arrangements in the Phillipines, or for anything else necessary. You should look carefully at your cash-out amount to decide whether it makes better sense to keep the policy in place or to cash it out ahead of time.