Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
No - with term life insurance, these policies do not build cash value so there is no surrender value if you terminated the coverage. If you wanted to terminate your policy, you could either call the carrier to request it be ended or stop paying the premiums and the policy will lapse on its own.
Please note, before terminating your policy, I would highly recommend consulting with your agent to discuss and see if there are any reasons why you should keep it. For example, if the premiums are no longer affordable, you may be able to reduce the face amount of the coverage to lower your premium and keep some level in place.
I hope the information is helpful - please feel free to contact me for assistance with your coverage and if you have any other questions. Thanks very much.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Term Life Insurance does not have a surrender value because this type of policy only provides death benefit coverage. There is no inside cash accumulation in a Term Life policy which is something that you would find in a form of Permanent Life Insurance. If the term policy that you have no longer meets your needs, talk to your Insurance Professional about other options that may be available.
That is a great question! Term life insurance policies are cheap because they have no extra's and a definite point on the calendar where they end. Whole life policies have more moving parts, and an indefinite end point, so are more expensive. One of those moving parts is the cash value aspect. Since term policies do not have this aspect, they have no surrenderable value. The premium that you pay for your term policy pays only for the cost of your insurance. I hope that helps, thanks for asking!
Term Life Insurance does not have a surrender value unless it is ROP (Return of Premium) Term. ROP Term will pay back some of the premiums that you paid in if you surrender the policy after at least half the term has passed. If you keep the policy for the entire term, it will usually pay back all the premiums you paid in.
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Please note, before terminating your policy, I would highly recommend consulting with your agent to discuss and see if there are any reasons why you should keep it. For example, if the premiums are no longer affordable, you may be able to reduce the face amount of the coverage to lower your premium and keep some level in place.
I hope the information is helpful - please feel free to contact me for assistance with your coverage and if you have any other questions. Thanks very much.