Term Life Insurance Do You Get Money Back?

If you are shopping for a term life insurance policy, you may be wondering if you get any money back should you outlive the duration of your coverage.

It's a good question and something you should find out about before you buy a policy.

Traditional term life insurance is much cheaper than permanent life insurance, because many people do outlive their coverage.

However, if you are alive when your term policy expires, there is no payout of benefits and no premium return.

You don't get any money back, unless you purchased a Return of Premium term life policy, which charges higher premiums than traditional term insurance.

Learn more about getting money back on term life insurance policies.

Money Back Life Insurance

Is there life insurance that gives you your money back?

Yes, it's called "Return of Premium" term life insurance.

With return of premium term life you pay your premiums monthly or annually for the entire duration of your term policy, which is usually for a period of 10, 15, 20 or 30 years.

If you outlive the term of your policy, you get back almost all of the premiums paid for your life insurance coverage.

The insurance company keeps some of the premiums to cover their costs, and they generate a profit by having invested the premiums you paid them over the years of your term life policy.

Although return premium term life insurance charges higher premiums than regular term life policies, you do get back most of your money if you live beyond the term of your life insurance, so it can cost you a lot less than regular term life insurance.