I have been paying X amount into a life insurance policy for nearly ten years and want to stop paying for it ,can i get any money back what i have already paid
2006-11-17 03:09:17 · 14 answers · asked by Anonymous in Business & Finance ➔ Insurance
Life insurance will not refund any premiums unless you lie about your age on the day you filled out the life app. Its like trying to ask the car insurance company to refund all your premiums because you don't want it anymore.
If you have cash value in the policy, you may surrender the policy to get the cash value. There will be surrender charges when you cancel the policy.
2006-11-19 16:52:01 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Not many insurance companies would stay in business if they paid back all the premiums paid by those policyholders who DID NOT have a claim. If that were the case, the Ins Co would have to pay on both claims and on every other policy holder. That is the recipe for bankruptcy.
The other answers are correct. If you have a term policy, then you bought the cheapest policy out there but you have no cash value. If you have a Whole Life or a Universal Life policy then there is some cash value that you can access.
First talk to an insurance agent or another financial professional. You may have many options to your situation. If you have dependents, you may need the insurance coverage.
2006-11-17 04:31:47 · answer #2 · answered by insuranceguytx 5 · 0⤊ 0⤋
As others have said, if the policy was a term contract, there is no cash value so you can't get any money back.
If it was a permanent plan of insurance, it has the capacity to build up some cash value. However, it takes a long time - probably longer than 10 years - for cash value to build up to be equal to the amount of premium you paid in. (And, by the way, you could trigger a tax event on any amount of cash value that exceeds the total premium paid to date if you surrender a cash value policy.)
Question for you: why do you want to "stop paying for it"? If you still have people dependent on you in some way, you shouldn't allow the policy to lapse or cash it in. You qualified for this insurance 10 years ago and, assuming the same type of contract, you probably can't qualify for a premium as low as the one you have now.
You should discuss your situation with a competent financial planner or competent insurance agent before making a move of any kind. Listen to what they have to say and then make a decision.
2006-11-17 15:25:33 · answer #3 · answered by SafetyDancer 5 · 0⤊ 0⤋
You can get the "surrender value" back from your life insurance contract if you surrender the policy. However, you may not have any surrender value in your account. If you policy is a term policy their will be no surrender value. Call the company you have the policy with and request an in-force illustration. That document will show you all the options you have.
If you have a spouse or dependents you should not cash in the policy if you can afford it. The older you get the more expensive life insurance gets. Cashing in you policy now may be a huge mistake for your dependents who will need it if you die. No one plans to die, but sometime it happens. So keep that in mind.
2006-11-17 04:07:56 · answer #4 · answered by Ryan T 2 · 0⤊ 0⤋
If it's a total life policy and not term, there should be a cash payout, but be warned that it will be horridly small compared to what you've paid in over the years.
Check your policy or call the insurance company and ask them to be sure.
2006-11-17 03:29:05 · answer #5 · answered by parsonsel 6 · 0⤊ 0⤋
depends on the type of policy, if it is a whole of life policy then no you cant. If it is an endowment type policy then you may get some of your money back. No policy will pay all of your money back. Life sucks doesnt it!!!
2006-11-20 08:38:38 · answer #6 · answered by Never Forever 1 · 0⤊ 0⤋
only if you have the kind of life insurance that builds a cash balance. most do not. what you got in return for that money was the opportunity for a lump sum to go to beneficiaries if you died.
so you paid for that, you got it and it's over. unless you have a policy that builds cash.
but if you have normal kinds (term) then it does not have a cash value.
2006-11-17 03:14:51 · answer #7 · answered by Sufi 7 · 0⤊ 0⤋
Not if it's a straight forward life policy, an endowment yes, but this sounds like a straight forward life. These are simply bets you can't win or hope to lose as if you win it'll mean you've died.
2006-11-17 03:22:29 · answer #8 · answered by Anonymous · 0⤊ 0⤋
If you've been overpaying, in the form of a "cash value" or "whole life" policy, you can get a small portion of your overpayment back - called "cashing out".
2006-11-17 05:48:15 · answer #9 · answered by Anonymous 7 · 0⤊ 0⤋
Would it not be a quick solution to phone the insurance company and speak to their helpful person in the India call centre?
2006-11-19 00:44:07 · answer #10 · answered by Mr Politeness 2 · 1⤊ 0⤋