How much can I get for my term life insurance policy?

The context determines how much you can get for your term life insurance policy:

If You Pass Away (Death Benefit):
Your beneficiaries will receive the full death benefit of your policy, as stated in your contract. For example, if your policy coverage is $500,000, that is the amount your beneficiaries will receive.
If You Sell Your Policy (Life Settlement):
- In certain cases, you may sell your term life insurance policy through a life settlement if it qualifies. This involves selling the policy to a third-party investor for a lump sum that is less than the death benefit but more than the cash surrender value (which is typically $0 for term policies).
- Factors that affect the payout include:
  - Your age and health (policies held by older individuals or those with serious health conditions are more valuable).
  - The remaining term of the policy.
  - The amount of the death benefit.
If Your Policy Has a Conversion Option:
Some term policies allow for conversion to a permanent life insurance policy. If converted, the policy may gain cash value over time, which you can borrow against or withdraw if needed. However, this only applies after conversion.
If Your Policy Expires:
- Term life insurance generally has no cash value, so if the policy expires without a claim, you and your beneficiaries receive nothing.
- Some term policies offer a return of premium (ROP) feature, which refunds the premiums paid if no claim is made. This option significantly increases the policy’s cost.

How to Determine Your Policy’s Value:

Check your policy to confirm:
- Death benefit amount.
- Whether it includes a conversion option.
- Whether it has a return of premium feature.
If considering a life settlement, consult a broker or financial advisor to assess the potential payout.

Key Takeaway:

If you pass away, your beneficiaries receive the full death benefit.
If you’re selling the policy or exploring conversion, the payout depends on the terms of the policy and market conditions. Most term policies, however, have no value if they expire without a claim.