Typical term life insurance policies typically do not return the premium at the end of the term, according to the New York State Department of Financial Services. However, there are return-of-premium term life insurance policies that do so for additional fees.
Term life insurance policies pay out the sum insured to the beneficiaries only in the event of the death of the insured, states Tim Maurer for Forbes.
If the insured person lives beyond the term period, the insurer does not have to pay the insured person any money, not even the premium paid, explains the New York State Department of Financial Services. However, the return-of-premium term life insurance policies return the premium you paid to the insurer at the end of the term of insurance. These return-of-premium policies either have a rider added to the term insurance policy, or the return is built into the policy itself. The cost for the return-of-premium term life insurance policies is greater than that for the pure-term life insurance policies.