When a policyholder purchases term life insurance, they are purchasing a death benefit. This death benefit is a lump sum of money that is paid out to the beneficiaries upon the death of the insured individual.
The amount of the death benefit is determined by the policyholder and their life insurance provider. The death benefit is the cash value of the term life insurance policy.
Term life insurance does not have any cash value that you can cash out of the policy if you don't die, unless you purchase an optional rider called Return of Premium, which has a cash value feature.
With return of premium term life, you get back all of the premiums you paid during the life of your policy if you outlive the duration of your policy term.
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