Does Term Life Insurance Have Cash Value?

Simon Huften

Simon Huften is the President of Life Insurance Canada.com Inc.

Term Life Insurance does not have cash value. It is very similar to home or car insurance – it is designed to provide insurance coverage for a period of time and is in effect while you are paying the premiums. If you stop paying the premiums, the coverage is no longer in effect and you do not receive any cash back.

There are three main types of life insurance available in Canada,

• Term Life Insurance (no cash value)
• Universal Life Insurance (also referred to as Term to 100 Life Insurance or Permanent Life Insurance)
• Whole Life Insurance (also referred to as Cash Value Life Insurance or Permanent Life Insurance)

Whole life insurance is the main type of life insurance which has cash value that can be accessed in different ways.

Universal life insurance is another type of life insurance which can have cash value depending on the amount of money that is deposited into the policy.

Life insurance policies that have cash value are designed for certain individuals. We highly recommend speaking with one of our license insurance professionals to help determine what type of life insurance is right for you.