Life Insurance – do I get a refund if I don’t die?

Many people think that, in today’s world, the only refund you will get from Life Insurance is when you die.

However, while most life insurance policies only pay on the death of the insured, or on diagnosis of a terminal illness, a few Life Insurance Companies do offer a refund policy which pays after a certain length of time. Of course, if Term Life Insurance policies were to provide a refund to every policyholder who didn’t die, the premiums would be unaffordable, so you can expect to pay a little more.

These ‘money-back’ term policies will often refund a proportion of the premiums after the policy has been held for a designated period, then a greater proportion (sometimes as much as 100% of base premiums is refunded if the policy is held for a full 10 year period), is paid at the expiry of the policy term, on the provision that the insured does not die and is not diagnosed with a terminal illness during that time.

So, if you wish to hedge your bets and ensure that you get a refund of your term life insurance premiums in the event that you don’t die, speak to one of the xLife insurance adviser to ensure that you have full access to the options available.

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December 2009