Selling an insurance policy for $

I've got a question and I'm wondering your opinion. My wife was took in by a friend of her immediate family when she was about 15 and that lady took out a life insurance policy on her. The other week she asked my wife if she wanted to cash it in since it was of age or leave it the way it is. My wife is thinking about cashing it in b/c she's not sure why she would still need the insurance policy since we are married and have been for 8 years. I'm not sure how that works, do you get full face value, do you get a % of it, or would we need to pay taxes on it or how does that work in NC?

 

Take over the policy and keep up the payments.
Always a handy source of loan money.

How old is she? Have kids? Are your funerals preplanned?
So much is situational.

 

WE've been having some trouble with our A/C unit freezing up and my wife was thinking about cashing it in so we can get another unit and not have to deplete our savings. She is 31 and we have a 2 year old. No funeral plans that we've made.

 

I guess if you need the money you need the money