In general, you do not receive money back from a term life insurance policy if you outlive the policy’s term. Term life insurance is designed to provide a death benefit to your beneficiaries in the event of your death during the specified term (e.g., 10, 20, or 30 years). If you survive the term, the policy typically expires, and there is no cash value or payout to you.

There is a specialized type of term life insurance called “Return of Premium” (ROP) term life insurance. ROP term life insurance is designed to provide a refund of the premiums you paid if you outlive the policy’s term.

Here’s how Return of Premium term life insurance works…

1. Premiums – ROP term life insurance policies often have higher premiums compared to traditional term life insurance policies.
2. Policy Term – Similar to regular term life insurance, ROP policies have a specified term (e.g., 20 years).
3. Survival Benefit – If you survive the entire term of the ROP policy, the insurance company will refund all the premiums you paid over the years. This means you receive a lump sum payment equal to the total premiums you’ve contributed.

ROP term life insurance typically costs more than traditional term life insurance due to the refund feature. While some people appreciate the idea of getting their premiums back if they don’t use the policy, others may prefer the lower premiums of regular term life insurance and are willing to forgo a refund in exchange for cost savings.

When considering life insurance options, weigh the cost, coverage, and potential benefits of various policies to determine which type best suits your needs and financial situation.