Can the Life Insurance Policy Holder redeem the money after the coverage period expired?

Let's say I have a Life Insurance policy for 20 years. Will the money be given back to the Policy Holder along with the Accumulated Interest on it?


No. You have been purchasing protection from unexpected emergencies. You got the protection you paid for. That money has been spent.

Some insurance plans do pay you something at the end. They do this by charging you additional money, and investing it. At the end, you get some of the profit n that investment, after the company has taken payments for managing this account. You can do better by setting up your own investments, separate from the insurance.


Let's say, I have a Life Insurance for 20 years. Whether the money will be given back to the Policy Holder along with the Accumulated Interest on it ?

This depends on the type of Insurance Policy.

If you have purchased a "Term Plan/Policy" then these do not give back anything. However the premium is very low and is essentially covering for the risk.

If you have "Cash Value type" of policies [Whole Life, Endowment, Universal Life, etc] then you get something back at the end. This depends on the policy document. The premiums are substantially high. It is generally advised that Cash Value type of policies are not good and the returns they generate are poor than depositing the difference in premium in alternative investments and buying a Term Plan.

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