Welcome to Quotacy’s Q&A Friday where we answer your life insurance questions. Quotacy is an online life insurance agency where you can get life insurance on your terms. I’m Jeanna. And I’m Natasha. Today’s question is can I cash out my term life insurance policy if I outlive it? The answer is no. And this is because term life insurance does not accumulate a cash value like some permanent life insurance does so there’s nothing to cash out. So if you outlive your policy the coverage simply ends. Right. Your coverage ends and you get to celebrate still being alive. Hooray! However, if you want term life insurance and don’t mind paying extra for a guarantee then you might want to consider return of premium term life insurance. Can you explain what that is to our viewers? Sure! Return of premium term life insurance is pretty much what it sounds like. It’s a term policy, but if you outlive it, you’re returned your premiums. So it’s a guarantee because either your beneficiaries receive the death benefit or you’re returned all the money you’ve paid in. Exactly. There’s a catch though. Return of premium term life insurance is more expensive than a regular term life insurance policy. How much more expensive? Well, for example, a 20-year $500,000 term life insurance policy for a healthy 30-year-old is going to run you about $30 per month. That same policy as a return of premium term life insurance policy will run you about $100 a month. That’s quite a difference. It is, but to some people it’s worth it. If you’re financially stable, you have monthly contributions going to retirement plans, and you don’t mind paying extra for that guarantee then return of premium term life insurance is a great option. And don’t some return of premium term life insurance policies offer a cash value? They do, but this cash value accumulates slowly and does not get added on to the death benefit or your returned premiums. So what’s the purpose of the cash value? Well, you can take a loan out on this cash value if you’d like. But like any other loan it accrues interest and you need to pay it back. So if you were to outlive your policy, when the insurance company is returning your premiums to you, they’re going to subtract that loan amount and interest. And if you were to die during the term, the insurance company will pay your beneficiaries the death benefit, but they’re going to subtract that loan amount and interest. So what if you decide you still want coverage after your term ends? The two most common ways of continuing coverage are to either buy a new life insurance policy or convert your term life insurance policy into a permanent life insurance policy as long as that conversion option hasn’t expired yet. Policy conversion is a little complicated. Let’s talk about that next week. I’m game. Thanks for watching. If you have any questions about life insurance leave us a comment. And if you have any questions regarding today’s topic, check out the blog link posted below. Otherwise, we’ll see you next week when we talk about term conversions. Bye!