What happens if I stop payment or cancel on my term life insurance I’ve had for the last four years?
Question by Norman O: What happens if I stop payment or cancel on my term life insurance I’ve had for the last four years?
Will I get any kind of refund?
Best answer:
Answer by timothy p
term doesn’t usually build a cash value.
Know better? Leave your own answer in the comments!
Tags: Cancel, Life, Payment, Stop, term, Term Life Insurance, what happens if stop paying term life insurance, Years
Not with term life insurance.
That’ why term is so much more cheaper than whole life.
By the way – never get whole life just for the refund if you ever cancell.
That is a horrible way to save.
Horrible.
Keep getting term life insurance – and stay away from whole.
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Of course not.
A refund? haha no they do not give back money because you or the person has not passed away! Your best bet is to keep paying it so you can get the money you paid into it when the person passes.
My husband and I both have term life insurance
You likely have built up a small cash value over 4 years. The insurance company will draw from that money to apply toward your premium. No refund though. You are still insured until there are no funds available to pay your premium.
Kudos to Dogbettor for the most correct answer! He is apparently one of the extremely few of us on Y!A who actually understands life insurance. Level term life insurance DOES have cash value; and no, it is not refunded in any event. An explanation of these statements is not really relevant here. What IS relevant is that anyone who does not already understand why these statements are true hasn’t the first clue about life insurance, and has NO business answering questions about it.
Completely depends upon the exact type of term insurance policy that you are carrying. Don’t just stop payment. Contact the company and verify the amount, if any, you may be due and ask for a cash surrender.
No, it’s just like a lottery ticket – if your number doesn’t come up, you can’t return your ticket for a refund.
That’s why term insurance is so cheap. If you want to use life insurance as a savings plan, you have to pay 10X as much, for one of those gimicky types, where you get a small fraction of your money back, after you cancel your policy. This type of policy is very popular with people who are bad at math.
You would no longer have any life insurance. A term life policy does not accrue a cash value.