Co-Founder, Coastal Financial Partners Group, California
No. Term life insurance normally provides temporary protection without a cash surrender value. Term life self-terminates at the end of a period of time.
Return of premium term is a form of life insurance that can provide a cash value (return of premium) after the term period ends for a higher premium than normal term life insurance. Only a few companies offer this product and of the few remaining insurers that do, the premium is relatively high.
No, Term life insurance does not usually have a cash surrender value. Term insurance buys pure protection rather than building up a cash value, and that is why the costs of Term life insurance is usually lower than policies that have cash value.
Return of Premium (ROP) Term is one type of Term that could have a cash surrender value if you kept the policy long enough.
Unless the term life insurance policy has been kept if force for the contract period and the policy was written with a return of premium rider, there is no cash value at the surrender of the policy. Some term life insurance policies have convertible provisions and older insureds could bid their term life insurance policy out on the open life settlement market to see what it’s value (if any) is.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Term life normally doesn’t have cash value. Some companies offer a policy that has a large cash value after an extended period of time. Other companies offer, “cash value term” as an intermediate product between term and whole life. Some companies offer a term to 65 policy that develops a very small amount of cash value in the middle years.
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Return of premium term is a form of life insurance that can provide a cash value (return of premium) after the term period ends for a higher premium than normal term life insurance. Only a few companies offer this product and of the few remaining insurers that do, the premium is relatively high.
Return of Premium (ROP) Term is one type of Term that could have a cash surrender value if you kept the policy long enough.