Term life insurance policies typically do not have a cash surrender value. Unlike permanent life insurance policies, such as whole life or universal life insurance, term life insurance is designed to provide coverage for a specific period of time, usually 10, 20, or 30 years. Term life insurance policies do not accumulate cash value because they are primarily focused on providing a death benefit to the policyholder's beneficiaries in the event of their death during the term of the policy.
The absence of a cash surrender value means that if you cancel or surrender a term life insurance policy before the end of the term, you will not receive any money back. Once the policy term ends, the coverage typically expires and there is no payout or cash value.
It's important to note that while term life insurance policies do not have a cash surrender value, they are generally more affordable compared to permanent life insurance policies. Term life insurance is often chosen by individuals who want coverage for a specific period, such as to protect their family during their working years or to cover a mortgage or other debts.
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