What happens to life insurance if you never use it?

What happens to life insurance if you never use it depends on type of policy. For term life insurance, if you never use it meaning you outlive the term, the policy simply expires with no payout, and you receive nothing back unless you have return-of-premium rider, and coverage ends unless you renew at higher rate or convert to permanent. You paid premiums for protection during term that was not needed, similar to auto insurance. For whole life and other permanent policies, if you never use it during lifetime, meaning you never surrender or borrow against cash value, the policy remains in force until death as long as premiums are paid, and death benefit is paid to beneficiaries when you die. If you stop paying, permanent policy may use cash value to cover premiums for a while, then lapse. Some permanent policies allow you to surrender and receive cash value if you no longer want coverage. So term that is never used expires worthless, while permanent that is never used ultimately pays death benefit to heirs.