Home Life insurance Life insurance questions Can I withdraw money from my term life insurance? Can I withdraw money from my term life insurance? Written by Nupur Gambhir Nupur Gambhir Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service. Reviewed by Leslie Kasperowicz Leslie Kasperowicz Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at Insurance.com. Updated on: October 7, 2022 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Term life insurance only lasts 10 to 40 years, and if you outlive your term life insurance policy (good news!) — it expires and you no longer have coverage. For most people, this is ideal. By the time their coverage expires, they no longer have as many financial obligations and don’t need life insurance. If you find you do need continued coverage, you can usually convert your term policy into a whole life insurance policy. However, you must do this before the policy expires, so make sure to begin the process at least six months before your coverage ends. Can I get money back from a term life insurance policy? Usually, no. Once a term life insurance policy expires, you do not receive any money back, even if the policy went unused. However, you can get your money back if you purchase a specific type of term policy called return of premium insurance. If you outlive your return of premium insurance policy, you’ll be refunded your premiums, although the insurer will retain any administrative fees.This may sound too good to be true, and that’s because it is. Return of premium life insurance is significantly costlier than traditional term life insurance. Most people will see higher returns by buying a traditional term life insurance policy and investing the difference. Can I cash out my term life insurance policy? No, you cannot withdraw money from term life insurance. Term life only pays a death benefit to your beneficiary if you die during the policy’s term. It doesn’t have the cash value component that some permanent life insurance policies have. You can sell your life insurance policy to make some money if you need to. This isn’t the most lucrative sale, however, as a lot of the payout will be deducted due to broker’s fees and taxes. Do I get money back if I cancel my term policy? No. You do not get money back if you cancel your term life insurance policy. The only instance where you might receive a refund is if you prepaid for some coverage. For example, if you pay your premiums annually but cancel your policy in the middle of the year, you will get a refund for the remaining months. However, administrative fees will likely be subtracted. QuickTake What is demutualization and what does it mean for policyholders? How to protect your life insurance money from being stolen Can you cash in a paid up life insurance policy? Can someone take out a secret life insurance policy on you? How life insurance works during a divorce Can you change the coverage of your term life insurance? Can I withdraw money from my life insurance policy? How can I get life insurance if I'm in poor health? Are you too old to buy affordable life insurance? Do life insurance policies pay out if you die of old age? Protect yourself from insurance revenge during divorce Can I take out a life insurance policy on my spouse? What to do if your life insurance policy lapses How to find lost life insurance policies How to forfeit life insurance proceeds? How do wills work with life insurance? Frequently asked life insurance questions Life Insurance: Waiver of premium is it worth paying how to find a lost life insurance policy of my relative? how to find a lost life insurance policy of my father? Would an accidental death policy pay for a cocaine overdose? Is the life insurance payout I received taxable? will life insurance pay if drunk driving can you cash in a life insurance policy Burial Insurance for Funerals Expenses Basics of term life insurance policy Can I find life insurance policies of deceased mother Can I find life insurance policies of deceased dad Would an AD&D claim be denied due to accidental overdose Can an ex-spouse collect life insurance money? What is API financial rating of life insurance companies Can a beneficiary take out a loan on a life insurance policy? Questions to ask when found the lost life insurance How long must I wait to get nonsmoker life insurance rates? Can a life insurance beneficiary change on deathbed? how to find a lost life insurance policy what happens to cash value in whole life policy at death How long do you have to be a non smoker for life insurance? See more > What if I still need life insurance coverage? If you outlive your term life policy and still need coverage, you have two options: Convert your term policy to a whole policy: Most policies include this option, but you need to convert your policy before it expires. Once your policy has expired, it cannot be converted. Buy a new policy: You can purchase an entirely new policy, though rates may be a lot higher because you’ve aged or if your health has changed. Make sure to compare the rate you will receive for a new policy versus the rate you will receive for a converted policy to get the best possible deal. While you can’t cash out a term life insurance policy, this is usually the best policy to buy. It provides the most robust coverage at the lowest possible price. Instead of getting a more expensive policy you can withdraw cash from, consider getting term and investing the difference for a higher return. × Get Free Life Insurance Quotes Today! Zip Code Please enter valid zip Age Age 16 – 20 21 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65+ Coverage Amount Coverage Amount $50,000 – $100,000 $100,000 – $200,000 $200,000 – $300,000 $400,000 – $500,000 $500,000 – $1,000,000 $1,000,000 – $2,000,000 $2,000,000 – $5,000,000 $5,000,000+ Coverage Type Coverage Type Whole Life Term Life Final Expense Not Sure Gender Gender Male Female Non-Binary Tobacco Use Yes No Compare Quotes Nupur GambhirManaging Editor | . .Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service. Related Articles Can you cash in a paid up life insurance policy? By Les Masterson Can someone take out a secret life insurance policy on you? By Desiree Ghazi What happens to the cash value of my whole life insurance policy when I die? By Nupur Gambhir Can you change the coverage of your term life insurance? By Insure .com Can you cash in a life insurance policy to pay off debt? By Barbara Marquand Can I withdraw money from my life insurance policy? By Desiree Ghazi On this page Can I get money back from a term life insurance policy?Can I cash out my term life insurance policy?Do I get money back if I cancel my term policy?What if I still need life insurance coverage? ZIP Code Please enter valid ZIP See rates