Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Oct 21, 2021

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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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Facts You Should Know

  • There are many policies available from life insurance companies that pay back if you don’t die within your policy term
  • To get a full or partial refund on life insurance, you will most likely need to include a return of premium life insurance rider
  • A return of premium life insurance rider comes at a hefty added expense with most insurers

If you’re a young adult shopping for term life insurance quotes, you might be wondering if there are any life insurance companies that pay back if you don’t die and your life insurance term ends.

Nobody wants to pay for a product they don’t use. To help protect you, we’ll break down what happens to term life insurance if you don’t die, life insurance refunds, and more.

In just a few minutes, you’ll know all about life insurance companies that pay back if you don’t die. Before you move on, take advantage of our free quote tool to get instant rates from top life insurance companies near you.

Are there any life insurance companies that pay back if you don’t die?

Some life insurance companies offer policies that allow refunds, but you might have to add a life insurance rider to have the privelege. Most commonly, return of premium life insurance riders help policyholders get refunds on term life insurance if they outlive a policy.

Some of the most popular companies that offer return of premium life insurance include the following:

  • AAA
  • Assurity
  • Cincinnati Life
  • State Farm

There are some smaller life insurance companies that will also offer a term life insurance policy with a return of premium rider. The above companies are more common so are most likely among the best return of premium life insurance options.

I have a return of premium term policy, would I get a refund?

The simple answer is, you should. Your life insurance provider will have certain stipulations relating to your return of premium eligibility. In short, if you make all of your payments on time and outlive your policy term, you should be in the clear.

The return of premium life insurance pros and cons are fairly clear. The pros are that you would get a full or partial return of all payments if you outlive your term life insurance policy. This works like any other refund, so it’s also untaxed money being returned.

On the downside, this policy feature comes at a hefty cost according to the Insurance Information Institute. In some cases, the refund might not be worth the expense.

With return of premium term life insurance quotes being so expensive, some financial advisors also mention that it could be more beneficial to spend that additional expense in an investment account instead.

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Where does the money go for a term life insurance policy?

Term life insurance policies are generally the most common. It’s hard to say exactly what each life insurance company does with your monthly payments, however, these companies do accrue a large amount of revenue that would ultimately be used to pay your death benefit.

Am I able to continue to be covered with a term life insurance policy if I outlive the term? Many life insurance companies will allow you to renew your terms while some will require you to establish a new policy.

Typically, a new policy will cost much more per month since age is a major factor in the life insurance underwriting process.

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That said, term life insurance isn’t your only option if you want long-term coverage, there are other options. For long-term life insurance, you might want to compare term vs. permanent life insurance.

How does term life insurance work? Term life insurance is paid by the month for a pre-determined term until you die or the term ends. If you die, your beneficiaries will be supplied a death benefit.

Permanent life insurance, generally whole life insurance or universal life insurance, is paid for over your entire lifespan and includes a cash value component that serves as more of an investment rather than a death benefit.

Your cash value can accrue interest and with some policies, it can be withdrawn to help pay for other expenses. If you’re concerned about outliving a life insurance policy, this could be a viable solution.

Life Insurance Companies That Pay Back If You Don’t Die: The Bottom Line

It’s easy to avoid life insurance companies that don’t pay back if you don’t die by choosing the right life insurance policy or riders. Choosing the right policy could save you a lot of money in the long run.

By now, you should know where to find life insurance companies that pay back if you don’t die. Before you go, use our free quote tool to get instant quotes from top life insurance providers in minutes.