Can Term Life Insurance Have Cash Value? 
Term Life Insurance does not have cash value , but if you get what is called Return of Premium Term -LRB- ROP Term -RRB- , it has a form of cash value . About midway through the term , depending on the policy , it will pay back some of the premiums paid in , IF you cancel the policy . By the end of the term , this type of policy will generally pay back all the premiums you paid in . Some negatives : This cash is not available unless you surrender the policy . If you are table rated , it may be that only the premiums up to standard are paid back to you . The price is substantially higher than regular Term Life Insurance . Some positives : If you bought regular Term Life and invested the extra you would have spent on ROP Term , it could take a return of over 5 % every year on the difference , to earn what you would get back , tax free , by keeping ROP Term to the end . Unlike regular Term , longer terms often cost less than shorter terms , with ROP Term . Finally , getting back all your premiums if you are still alive at the end of the term is a great way to have `` free '' coverage and then get back enough for a final expense fund when the term ends . 