No, term insurance does not have any cash value. I compare it to renting, the premium is pure cost. A whole Life policy cost more per month, but it builds equity in the form of cash value. Deducting the accumulated cash value from the total premiums paid helps show the true cost of whole life insurance, which will be much less than term after 20 or 30 years.
Co-Founder, Coastal Financial Partners Group, California
Normally, term life insurance policies do not have any cash value to withdraw or borrow against.
There are some universal life insurance products that are sold like term insurance and may have a cash value in later years or through a return of premium rider. In such cases, it may be possible but only if there is a cash surrender value report in the annual statement.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance companies offer a vast array of policies. There are a few term policies that have cash value. The amount of cash value developed in a short term policy would be quite low. The reason that these policies exist is to ease the shock that comes at the end of the term when the renewal for the policy spikes.
That is a great question! Unfortunately, there is no cash value in a term life policy. This type of insurance is designed to cover you for only a specific amount of time, and has no payout if that time comes and goes. That is why they are so cheap, as they frequently do not have to pay, unlike whole life policies, which will pay out for certain, one day. I sincerely hope that this was explained to you when you purchased your policy. Thanks for asking!
Regional Marketing Director, Capital Choice Financial Group,
Usually you can't draw money from a term policy unless the policy has a provision in it called living benefits and, to my knowledge, there is only one company that has that rider and that is Transamerica. They have the option to receive up to 90% of the face amount in case of a terminal, critical, or chronic illness. Otherwise, no withdrawal is possible.
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There are some universal life insurance products that are sold like term insurance and may have a cash value in later years or through a return of premium rider. In such cases, it may be possible but only if there is a cash surrender value report in the annual statement.