Does international life insurance have a cash value if you cancel it?
No, international life insurance does not have a cash value if you cancel it as the Term Assurance policy has no cash-in value at any time. This is set out explicitly in the policy terms and conditions. If you cancel your cover before the end of the policy term, cover ends and no money is returned.
Why term life insurance has no cash value
International term life insurance is a pure protection product. The premiums you pay fund the cost of maintaining your cover throughout the policy term. They are not accumulated in a fund, held in reserve, or invested on your behalf. If the policy ends, whether by cancellation, lapsing, or reaching the expiry date without a claim, there is nothing to return.
This is a fundamental characteristic of term life cover, and it is a significant part of why term policies are typically more affordable than other types of life cover that do accumulate a cash value.
The cooling off period
The only circumstance in which a refund of premiums applies is if you cancel the policy within 30 days of the start date. Within this cooling off period, all premiums received will be returned, less any medical examination expenses incurred in assessing the health of the life assured. Outside of this 30-day window, no refund applies on cancellation.
If premiums remain unpaid for more than 90 days after the due date, your policy may be cancelled. If this happens, cover ends without payment and no cash value is returned.
If you want to reinstate a cancelled policy, we may agree to do so at absolute discretion, subject to payment of all outstanding premiums and applicable charges, and to terms and conditions determined at the time of reinstatement.
Expatriate Group international life insurance is designed to protect your family, not to function as a savings vehicle, which is what keeps the cost of cover straightforward for the duration of your policy term.
