Can You Cash In A Term Life Insurance Policy?

1. 

   63333 POINTS

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   Peggy Mace

   Most of the U.S.

   You cannot usually cash in a Term Life Insurance policy because Term Life does not have any cash value. The exception is ROP (Return of Premium) Term. About halfway through the term, it would give you back some of the premiums you paid in, if you were to drop the policy. If you are alive at the end of the term and the policy is still active, you can get back up to the total amount of premiums you paid in.

   Answered on February 5, 2014

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2. 

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   Mark Taylor

   Licensed Life Agent, Life and Finance/ 50 States, New York

   Term policies are written for a specified amount of time in years like 10, 15, 25, and 30. These are terms in time. Unlike whole life policies they do not accumulate cash value. The younger the age of the applicant the better the lower will be the rates. Which will change at the end of each term.

   Answered on February 6, 2014

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3. 

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   David G. Pipes, CLU®, RICP®

   Business Development Officer, T.D. McNeil Insurance Services, Fresno, California

   Horace Mann Life Insurance Company writes a cash value term (CVT) policy.  Normal term policies do not build any cash value and the cost can become prohibitive if coverage is still needed after the policy term.  The CVT policy allows you to receive the cash value if you no longer need the coverage.  It can also be used to buy paid-up term insurance to 95 or continue coverage past the term with reduced rates.

   Answered on February 20, 2014

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