December 22nd, 2007 | 
Author: 
Joseph T asked:
can I receive funds back at the end of a term life insurance policy
Adam Waterford
can I receive funds back at the end of a term life insurance policy
Adam Waterford
Posted in Insurance | 
Tags: Insurance, Life Insurance Policy, Term Insurance, Term Life Insurance, Term Life Insurance Policy
Nope, you pay a decreased premium compared to a whole life policy where you are guaranteed to get money one day… No money back at the end of term life
Nope. That’s whole life. Most fiancial pros advise against whole life.
No it is pure insurance the same way that car insurance does not have an investment component. Generally you are better off separating your insurance from your investment as you can and should achieve much higher returns investing on your own in an index fund than you will get out of the higher premiums on a whole life or universal life policy. A life insurance policy with a cash value may make sense if you are in a high tax bracket and have maxed out qualified plans such as a 401k or IRA. I would speak to a CFP before making a decision.
I assume when you say funds you mean premiums. The only time you can get your premiums back if you have a ROP term life insurance. ROP (Return of Premium). You must out live your policy. The return of premium only returns premiums on the policy and does not include return of premiums on any riders on the policy. If you die your beneficiary receives the face amount on the policy and not the return of premiums.
try you can learn more about insurance and you can get fre quotes that you can compare for others. after you get your fre quote someone from customer service might call you to explain and clarify all your question.
If you buy a return of premium term policy you’ll get all of your money back. You just have to quote it to see if it makes sense. Many time it’s the equivilent of getting a 5-7% tax free rate of return on your money. Yesterday I quoted it for a client and it was only 2.9% so we just opted for regular term. Sometimes it works and other times it doesn’t.
Only if you have a Return Of Premium rider on the policy. Despite what the above says for rate of return, you actually lose money. You get every penny you put into the policy back, thus a 0% rate of return. Effective rate of return would be around -4 or -5%.
Now, that is better than a -100% on a pure term policy.
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All that being said, do you expect your money back at the end of you auto policy? your health policy? so why should your life insurance be any different.
Don’t pay more than you have to for something you probably wont ever use.
No…Term Life Policies do not accumulate any cash value. Thats why they are so cheap. But you can convert your Term to a Perm & start building a cash value…I hope this helps