When you are looking for life insurance, it is important to understand the different types of policies that are available. One of the most common types of life insurance policies is called a term policy. A term policy is a type of insurance that provides coverage for a specific period of time, or “term.” In this guide, we will discuss whether or not term life insurance policies have cash value.
Does term life insurance have cash value?
No, term life insurance does not have cash value. Cash-value life insurance is a type of permanent life insurance where you pay a premium and then, over time, the policy builds up a cash reserve that you can access while you’re still alive.
The closest type of term insurance to cash value term life insurance is Return of Premium life insurance. This Return of Premium rider for term life insurance means that you will get all the premiums you paid back in one lump sum if you outlive the policy. If you cancel your policy early, you might get some of the premiums back.
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