Does Term Life Insurance Have A Cash Value? 
In the public understanding of the word `` Term '' there is much confusion . In the insurance world term defines the period of coverage with just enough premium to pay for the risk of death and handling costs . Since there is no extra premium beyond this minimal cost factor there is no cash value and at the end of the period the insurance expires the same as insurance on your car , home or liability . The misconception comes when persons get this `` term '' mixed up with paid up policies that are paid up at the end of a certain period . These paid up policies require much more premium and in a nation that has known a lot of inflation are usually not a good buy from a financial standpoint . One of the better types of Life Insurance in today 's market is the Universal Life which can be made into term , paid up insurance , retirement life and many other options . The Universal Life policy puts the policy owner in control but it also means that the policy owner must completely understand the provisions in the policy or it can actually work against the owner . It also means that the financial planner must stay in close contact with the policy owner through out their lifetime . This would be even more true when the financial planner uses term in a total financial program for individuals . 