Can my mother cash in a life insurance policy she made out to me?

You left important information out of your original question. You did not tell us your mother had incipient dementia. Then you complain when we get "snarky." It's your fault for not explaining the situation better in the first place.

If it's term insurance it can't be cashed in until she dies. However, she can cancel it. If it's whole life insurance, she could cash it in. You need to find out more information about exactly how the policy is worded (if you can).

There are a few questions you need to answer first. Is the policy a life insurance or an annuity?

Assume it is life insurance, if the face amount otherwise called the death benefit the $25,000? If so you only get the cash value if the cash in the policy not the death benefit.

Second, who is the owner of the policy? Only the owner can cash in the policy or make any changes on the policy. Call the insurance agent or company and ask. There is no other way to find out what you want to know.

Whoever owns the policy, can cash it out, if there's a cash value.

It doesn't matter who the beneficiary is, or who the insured life is. The policy OWNER gets to cash it out.

So, since she paid for it, she's most likely the owner, and you're the beneficiary. Yes, she can cash it out, if she wants to. You get no say, if you're not the OWNER of the policy. You don't have to sign anything.

She apparently is the owner of the policy and you are the beneficiary.

The owner of a life insurance policy is the one who has the rights that are stipulated in the contract. These include the right to name a beneficiary; the right to participating dividends (if any); the right to surrender the policy for its cash value; and the right to transfer ownership. The beneficiary is named in the policy to receive the proceeds of the death claim.

As the owner of the policy she does not have to have your approval or signature.

I have never heard of someone paying for the entire value of a policy in one lump sum. It usually paid monthly or quarterly. If it is a whole life policy there is accrued cash value and dividedends. Whether it can be cashed out and at what point you have to talk to the insurance company.

Sorry, but your Mom can do with her policy what she chooses. The only exception would be if she had listed an "irrevocable beneficiary" and this is almost never done except in some business situations. If she had done that - you would have been present when the policy was written.

Your question is unclear. Are you talking about a life insurance POLICY or an insurance ANNUITY? And in either case, who owns it?

If SHE took out the policy, SHE can do whatever she wants with the money.

if your under 18 and you have an annuity then technically she can cash it in without your consent