If you choose to surrender your life insurance policy for cash value you will typically be taxed the difference between any proceeds received and the cost of the life insurance policy. (termlife2go.com)
Some companies will even buy term life insurance policies for cash, but only if you're quite old or sick, so likely to pass away during the policy term. (valuepenguin.com)
You can also surrender your whole life or universal life policy for cash before the policy matures. (lifeant.com)