Does Term Life Insurance Have Cash Surrender Value?

When it comes to life insurance, there are many different types of policies available. One of the most popular types is term life insurance, which provides coverage for a set period of time and typically has lower premiums than permanent life insurance policies. But one question that many people have about term life insurance is whether it has cash surrender value. The answer is yes, but there are some caveats you should be aware of before deciding if this type of policy is right for you. In this article, we’ll look at what cash surrender value means and how it applies to term life insurance policies.

What is term life insurance?

Term life insurance is a type of insurance that provides protection for a set period of time, usually 10, 20, or 30 years. The death benefit is paid to the named beneficiary if the insured dies during the term. If the insured does not die during the term, the policy expires and there is no death benefit paid.

What is cash surrender value?

The cash surrender value is the amount of money that an insurance policyholder would receive if they decided to cancel their life insurance policy. This value is typically only a fraction of the total death benefit, and it varies depending on the length of the policy and the insurer.

Does term life insurance have cash surrender value?

Assuming you have a policy with cash surrender value, yes, you can get some money back if you cancel your term life insurance policy.

The amount of cash you receive depends on how long you’ve been paying into the policy and the current market conditions.

For example, if you have a $100,000 policy that you’ve been paying into for 10 years, you might be able to get $5,000 back if you cancel the policy today.

However, it’s important to note that cashing in your term life insurance policy will likely mean forfeiting the death benefit. So while you may get some money back now, your family won’t receive anything if you die while the policy is still active.

Therefore, it’s generally advisable to keep your term life insurance policy until it expires rather than cashing it in early.

How to get cash surrender value from term life insurance

Term life insurance policies do not have a cash surrender value. This means that if you cancel your policy, you will not receive any money back.


Term life insurance is a great way to provide financial protection for your family in case of your untimely death. In terms of cash surrender value, term life insurance policies do not have any form of cash value like whole or universal life policies do; however, you may be able to borrow against the policy in some cases. If you are considering applying for a term life insurance policy, it’s important to understand what type of settlement options are available and how they compare with other types of life insurance policies.