Do Term Life Insurance Policies Have Cash Value?

Shawn Plummer

CEO, The Annuity Expert

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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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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