Term life insurance is just that. You pick a period of time, say 10, 15 or 20 years, pay a premium and during that term should you die, a death benefit is paid to your beneficiaries. If you outlive
that term, there's no way to recoup the cumulative premiums paid.
There is however a hybrid product called 'Return of Premium Term Life Insurance" that is growing in popularity.
Consider a 'traditional' 20 year term policy for $500,000 on a 45 year old female. The annual premium is $565.
The annual cost of a Return of Premium 20 year term policy for $500K on the same individual would be $1,865. at the end of 20 years, you've paid $26,000 more for the same death benefit.
But you would also receive a check for $37,300.
Actually, there are other life insurance products that allow you to collect benefits while living;, for long term care, for example.
Considering we now have health insurance plans that pay out cash if you stay well, this all makes perfect sense.
