Life Insurance: Is there a refund on premiums if no claim is lodged?
There is a wrong belief that the only way to refund your premiums from a life insurance policy is to die. In Australia, most insurance companies now hold refund provisions especially after holding an insurance policy for a specific duration. Term life insurance products provide refund to each policyholder who did not die within a specified or expected period. It would be the option of the policyholder whether to get a refund or hold the policy until his demise.
Money-back term on policies often refund only a proportion of premiums after a policy has been held for a specified or designated period. A greater proportion (up to 100% of total base premiums) is paid usually upon expiration of the policy’s term. This is done on the provision that the policyholder does not die or is not diagnosed with any terminal illness during the time.
Some policy owners like the idea of having to enjoy and reap the fruits of diligently paying insurance premiums before they die. The idea makes sense. Thus, Australia life insurers get the raves for allowing such refunds to take place.
As you find and buy any life insurance policy across the country, be sure to choose the product that would eventually allow you to file for a refund of the term life insurance if you do not die within a time set. Carefully speak to insurance advisers to get full access and knowledge to available options.