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Do You Get Your Money Back at the End of a Term Life Insurance Policy?

Term life insurance is the most affordable and commonly purchased type of life insurance in Canada. A very frequent question that we receive from our clients is “Do I receive the money that I paid for my term life insurance back at the end of the term?” or “Can I have the return of my premiums paid back at the end of the term?”. The answer is quite simply (and unfortunately) no.

Term life insurance provides life insurance coverage for a specific length of time. This is typically 10, 15, 20, 25 or 30 years. Most Canadians purchase term life insurance because they have a need for life insurance for a period of time. They also purchase term life insurance because you can get a high amount of life insurance coverage for an affordable cost. The insurance is usually purchase because they have a young family, someone financially dependent on them, debt (mortgage, credit cards, lines of credit, student loans etc.), business purposes, children’s education, etc.

Unfortunately, term life insurance does not offer you your money back at the end of your term. If it were an option today, the premiums would be very expensive and many would most likely not purchase it anyways as there would be better alternative investments that would provide more flexibility and liquidity.

There are some instances where policies that were taken out many moons ago did have an option where the premiums were returned at the end of the term. These policies cost much more than if they did not have return of premium.

Please keep in mind that there are types of life insurance where there are investment values that increase over time which can act as a type of return of premiums paid.

As always, we suggest that you reach out to us so that we can learn more about your specific situation to determine what type of life insurance is best for you and your family. You can email or call us at 1-877-344-4011 and speak with a licensed agent who can provide the assistance you need.

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