When you set up a policy with both a first and last payment deposit, those funds are typically applied to cover your first and final billing periods.

If you maintain your policy through its full term (and renew it rather than cancel), that deposit goes toward your premiums—meaning it isn’t returned to you outright, but rather used to pay for your last month(s) of coverage.

If you do cancel mid-term, you may receive a refund for any unused portion, minus any applicable administrative fees