You may be able to get a refund, or a partial refund when you cancel your life insurance policy. Depending upon your type of policy, you may also get a payout of the cash value in your policy. A life insurance policy is a wise investment, but it’s also a financial commitment.

How long does it take to get life insurance money back?

With most insurance companies, claims are paid within 30 to 60 days after they receive the required documents, such as a copy of the death certificate, the beneficiary’s current address, etc.

How can you receive a refund for a term life insurance policy?

How Can You Receive a Refund for a Term Life Insurance Policy? If you have purchased a term life insurance policy with a return of premium, you can receive a refund for your premiums. This type of policy is just what the name suggests: when the term of the policy is up, your insurance provider will return your premiums to you.

How does return of premium life insurance work?

Return-of-premium life insurance can be purchased as a special policy or as a rider to a traditional term life insurance policy. Just like with regular term life insurance, return-of-premium life insurance requires you to make regular premium payments. If you die during the policy’s term, your survivors receive the death benefit.

Can you get money back if you cancel a life insurance policy?

Life insurance policies almost never give a refund back, no matter when you cancel it. Just about the only time that you can get money back is if you pay the entire term on a Return of Premium policy, but you won’t get any money back if you buy a standard term policy and then cancel it.

Is there a cooling off period for life insurance?

In most cases, you won’t receive a refund on the premiums you paid. However, when you purchase a policy, insurers are legally required to give you a cooling-off period. This is known as the free look period, and it lasts 10 to 30 days depending on the state you live in.