At the end of a 30-year life insurance policy, your insurance company pays out either death benefit or the accumulated cash value to the beneficiary.
Death benefit: Upon the policyholder's death, the life insurance company pays out the death benefit to the designated beneficiary. The death benefit is equal to the face amount of the policy, as long as you have paid your premiums on time.
Cash value: Life insurance policies also have an accumulated cash value that increases based on the returns from the investments the policyholder has made. The policyholder can opt to withdraw the cash value of their policy at the end of the policy period instead of the death benefit. The insurer subtracts the accumulated cash value of the policy from the death benefit amount and pays the beneficiary the remaining balance.
It is important to note that some life insurance policies are term policies and do not include any cash value. In this case, the beneficiary will only receive the death benefit upon the policyholder's death.
It is also important to understand your specific terms and conditions. You can refer to your policy documentation, or you may contact your life insurance company directly to find out what happens at the end of the policy period.
