That is a great question! Unfortunately, the answer is no, because there is no money there to get. Term policies are as cheap as they are because the premium cost is generally just enough to cover the cost of insurance, associated costs, and the company's profit margin. These policies have no cash value as a result, and no surrender value either. Whole life policies will have the cash value and surrender values that you were thinking of. I'm sorry, but I appreciate you asking!
No. Term life insurance policies are designed to provide only the promised payment on proof of death provided for in the policy. Term life policies do not build up cash value in the same way that Permanent life insurance policies (Whole or Universal Life) can do. The closest you could come to getting money back from a term life policy would be to purchase one with a "Return of Premium Rider" that provides for the refund of the premiums you have paid during the term (time period) the policy was in effect and then expired while the policy holder was still alive. Of course, you do pay extra for this rider so in effect you are paying the insurance company money that they can invest and earn from while the policy holder will receive only the total amount of premium paid. When you take inflation into account over a period of 10, 20 or 30 years that term policy might be in effect you really end up losing value compared to conservatively investing that same money (for the return of premium rider) over that same time period.
If you ware wanting a life insurance policy that builds up cash value that you could access at some future date then you should shop for a Whole or Universal Life insurance policy of some type.
Term Life Insurance does not have any cash value to borrow from, and you cannot generally sell a Term Life policy in a life settlement. The only way Term Life pays money is if you pass away while the policy is in effect, which is during the years of the term. Then the money would go to your beneficiary.
Term Life Insurance has come a long way from days past when it just paid you a death benefit to your heirs when you passed.
Today, besides having the death benefit, you can design your term life policies to give you access to the death benefit if you have a covered Critical Illness or Chronic Illness along with Terminal illness too. This gives you some flexibility during these hard times.
Having the Return of Premium rider on there is another option, basically giving you free insurance if you keep the policy to the end of the term. Generally speaking, the return will be equal to 4-8% if you were to invest the difference. It all depends on your age, the amount of premium and the length of time you have the policy.
Talk to a Broker to discuss what makes the most sense to meet YOUR needs.
President, Lane Independent Agency, Southern California
No. That is what permanent insurance is for. Term is temporary and builds up no cash equity or borrowing power. When payments end, there is nothing left. If you want that type of benefit coverage, we can certainly help you with it. Thank you very much. GARY LANE 714 422 9616
While you can't access "cash value" from a term insurance policy, there are some plans that have "bells and whistles" that could be in your interest.
One option is a Return of Premium term option. At end of term period, you receive your premiums back. Or some of these policies convert to a Reduced Paid Up policy at end of the initial term period.
Lots of options out there, which benefits the consumer!
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If you ware wanting a life insurance policy that builds up cash value that you could access at some future date then you should shop for a Whole or Universal Life insurance policy of some type.
Today, besides having the death benefit, you can design your term life policies to give you access to the death benefit if you have a covered Critical Illness or Chronic Illness along with Terminal illness too. This gives you some flexibility during these hard times.
Having the Return of Premium rider on there is another option, basically giving you free insurance if you keep the policy to the end of the term. Generally speaking, the return will be equal to 4-8% if you were to invest the difference. It all depends on your age, the amount of premium and the length of time you have the policy.
Talk to a Broker to discuss what makes the most sense to meet YOUR needs.
One option is a Return of Premium term option. At end of term period, you receive your premiums back. Or some of these policies convert to a Reduced Paid Up policy at end of the initial term period.
Lots of options out there, which benefits the consumer!