Can you get back the money paid for insurance premiums?

Asked by: Bernardo Abshire DDS  |  Last update: February 1, 2026
Score: 4.4/5 (65 votes)

Receiving an insurance refund will largely depend on why you're canceling the policy and how much of the premium you paid in advance. If you pay your full premium upfront, then you'll typically get a refund when you cancel your policy.

Can insurance premium be refunded?

Insurance Premium Refund. An insurance refund refers to when the insurance company returns a part of the premium paid by the policyholder, usually due to the cancellation of the policy before its expiration date, overpayment of premiums, or adjustments made to the policy terms.

Can you get insurance premiums back?

Am I entitled to return of premium on my term life insurance? You're typically only entitled to getting your term life insurance money back if you purchased a return of premium rider with your term policy, you made your payments on time, and you're still living when the term ends.

Can I take back my insurance money?

Under a basic term insurance plan, you do not get money-back at the end of the life insurance term. On the other hand, under a money-back term insurance plan, you get assured returns at the end of the policy term.

Can an insurance company make you pay back money?

Yes, it can and likely will if you recover compensation for medical costs. The argument for this is that your insurer would not have had to pay the medical expenses if not for the liable party's actions. Our experienced personal injury attorneys can assist you with paying back the insurance company after a settlement.

Do I get money back if I cancel my term life insurance?

22 related questions found

Can insurance payments be refunded?

Your insurance company may issue a refund if your policy is canceled, and you've paid your premium in advance. Receiving an insurance refund will largely depend on why you're canceling the policy and how much of the premium you paid in advance.

Can an employer make you pay back insurance premiums?

An employer may recover the cost of group health insurance premium payments made during any unpaid part of a FMLA leave if the employee: (a) fails to return from leave when the leave entitlement expires; or (b) returns from leave but fails to work 30 calendar days after returning.

How to get money back from an insurance company?

If you paid your premium in advance and cancel your policy before the end of the term, the insurance company might refund the remaining balance. Most auto insurers will prorate your refund based on the number of days your current policy was in effect.

How to calculate insurance premium refund?

Pro-rata calculation: To calculate a pro-rata refund, insurers divide the total premium by the number of days in the policy term, then multiply by the number of unused days. Example: If you paid $600 for a 12-month policy and cancel after six months, the calculation is $600 / 365 days * 183 unused days = $300 refund.

Can I keep the money from an insurance claim?

The auto insurer has fulfilled their obligation by making payment on a valid claim, so as long as your policy and state allow it, you can keep the money to use as you choose.

What is the 80% rule in insurance?

The 80% rule means that an insurance company will pay the replacement cost of damage to a home as long as the owner has purchased coverage equal to at least 80% of the home's total replacement value.

How premium can be returned?

Return Premium in More Detail

There are several circumstances that could trigger a return premium, including the policyholder canceling the policy before its expiration date, the insurer canceling the policy, or changes in the policy that result in a lower premium.

Can insurance premiums be written off?

The IRS allows for “the ordinary and necessary” costs of insurance to be written off, as long as it's being used for trade, business or professional reasons.

Can you get insurance premium back?

LOS ANGELES, Calif. — Insurance Commissioner Ricardo Lara ordered insurance companies to return insurance premiums to consumers and businesses and provide much-needed financial relief during the COVID-19 emergency.

What is the refund of premiums?

A refund of premiums is a payment that is paid or deemed to have been paid from a deceased annuitant's RRSP to a qualifying survivor. This payment can be included in the income of the qualifying survivor who receives it instead of the income of the deceased annuitant or the annuitant's estate.

Can I cancel my policy and get a refund?

Ans: Yes. Your health insurance premium can be refunded if no claims have been raised during the tenure served.

What are the two types of cancellation?

There are three common methods of cancellation: pro-rata, short-rate, and flat rate.
  • Pro-rata cancellation refers to the termination of a policy before its maturity, either at the request of the insured or by the insurer. ...
  • Short-rate cancellation occurs when the insured requests the termination of the policy.

How do insurance refunds work?

If you make a change that lowers your bill, your insurance company will give you the money back for the remaining time in your policy. Some insurance companies may keep the extra money and automatically apply it to your next bill. But if you'd like the cash back now, call your insurance company and request a refund.

What is the premium refund clause?

A premium refund is a clause in some insurance policies that provides beneficiaries with a refund of the total premiums paid to date. Depending on the contract and type of insurance, this clause may grant a refund of premiums if the policyholder dies before the term ends or voluntarily terminates the coverage.

Can we get insurance money back?

Yes, you can get back money in the form of a maturity benefit in term insurance plans. These plans are just like regular term plans with the dual benefits of death and survival benefits.

How do I get reimbursed from insurance?

You need to submit all claims to the insurance company within 90 days of the medical care received, even if you have not reached your deductible. When submitting claims always submit a ? Claim Form? that is provided by your insurance company along with copies of all receipts.

Is there a cancellation fee for Progressive insurance?

Is there a fee for cancelling Progressive? This varies by state and when you purchased the policy. In some states, Progressive will charge a $50 cancelation fee if you cancel within your first term; meaning your policy has not yet renewed. Once the policy has renewed there will no longer be a cancellation fee.

Do insurance companies refund unused premiums?

In most cases, yes, any unused insurance premium will be refunded minus fees.

Can a company make you pay back an overpayment?

Employers are allowed to take action to take back any overpayment in wages. This would usually be by deducting set amounts from the employee's future salary payments.

Can you get a refund for health insurance premiums?

The Premium Tax Credit is a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace, also known as the Exchange. The size of your Premium Tax Credit is based on a sliding scale.