1. 225 POINTS
    Kyle Monahan
    Independent Agent, Monahan Insurance, Orlando, FL
    Term life insurance does not payout. The only time you will get any money back from a term policy is an ROP or Return Of Premium policy. In that case, once the specified term has completed, the base premiums are returned.

    Whole life insurance will pay out (or 'endow') the face amount at maturity. This is typically at age 100 for traditional policies, but many are now set to endow at age 121.
    Answered on September 3, 2014
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Companies design a wide variety of policies.  Some term products actually have a cash payout at the end of the policy term.  However, cash indicates that you are really interested in permanent insurance.  A permanent policy must develop cash values to provide the protection that you need to last a lifetime.  If the need for protection is ended, the policy can be surrendered for the cash accumulated in the policy.
    Answered on September 3, 2014
  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! If you are referring to term life policies, the answer is no, that's the reason they are so cheap. If you are referring to whole life policies, then the answer is yes, when the insured passes away, in almost every single case the policy pays. The only way a term policy will pay you is if you perish during the term, or have paid extra all along to have a return of premium rider added to your policy, which returns to you what you'd paid into it (not the face value of the policy). If you want cash, don't buy term. I hope that helps, thanks for asking!
    Answered on September 3, 2014
  4. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    No, life insurance does not have a payout at the end of the term unless "ROP" life insurance was purchased. ROP stands for "return of premium". This type of policy charges a rate that is higher than normal life insurance, which the life insurance company invests. If you keep the policy long enough, they are able to return the premium due to their use of that money over the years.
    Answered on April 15, 2015
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