do you get your money back you paid on term life insurance?

Question

Lets say I get 10 years of term life insurance....if I do not die do I get all the funds back that I payed into it???? I feel whole life is a much better deal!!!!

Answer 1

Unless the policy is a "Return of Premium" term policy (ROP term), then no; you don't get your money back. Keep in mind that you won't get anywhere near all of your money back with whole life if you surrender it after only 10 years. All you will get is the surrender value, which will be relatively small. Of course, if it is a participating whole life policy, then it should probably be close to paying its own premiums out of dividends by that time. Keeping it in force is probably a more valuable option for a 10-year old whole life policy.

Answer 2

Term vs Permanent is definitely a hotly debated subject. For term insurance, the money you paid is all lost because the premium is 100% cost. Also if you decide to continue the insurance AFTER the end of the term do not be surprised if the premium will be 10x more expensive (after a 20 year term policy) Since you are so young, it is definitely a good idea to lock-in the low costs before you are older and it will be much more expensive. However it is more important to have the coverage you NEED. If costs are out of you budget get term insurance until you are able to afford whole life. You can ask an insurance professional, or financial advisor if they can recommend a CONVERTIBLE term policy where you can slowly convert term to whole life. Usually after 17-20 years of paying whole life premiums the policy can usually pay for itself.... literally! and you will not have to pay any further premiums... and you will have the coverage for the REST OF YOUR LIFE. Personally, I'm not a fan of "Buy Term, invest the difference" If you feel that AGGRESSIVE towards your life insurance, you can look into a variable universal life insurance policy. It is also a "permanent" life insurance policy that invests with the market. Once again speak to a professional or two in person. Let them know your situation. If they give you options listen to them. If they ONLY say buy term.... of if they ONLY say buy whole life.... walk out the room and find someone else.

Answer 3

You get nothing back on term life insurance payments. It's much like automobile insurance. It only pays out if you die while the policy is in force. And term life is actually a better deal than is whole life. Yes, you can take 'cash value' from a whole life policy. However, when you compare the premiums needed to fund a whole life policy, you will quickly discover that you are farther ahead to buy term life and take the premium savings and put them into the bank.

Answer 4

Return of Premium term life is a bad deal - if you do the math, you'll figure out that the increased cost of insurance makes the plan "not worth it", especially after you factor in that most people cancel their insurance policies (all types) within five years of buying them.



Just like buying a lottery ticket, just because your number didn't come up, doesn't mean you're entitled to a refund.



Anyone who thinks of insurance - any kind - as a savings or investment tool, needs to go back and re-read what the PURPOSE of insurance is. Insurance is NOT a savings or investment tool. You want your money back? Buy jewelry.

Answer 5

You will not get the premiums back...However there are '' Return of Premium" term life policies. Most of those are 30 year term. I would not advise you to buy term and put the savings in the bank. You should find someone in your area that can put your savings in a safe growth fund.Your rate of return will be much greater than money in a savings account.

Answer 6

Yeah that seems to be true

Answer 7

I think so