Term Life Insurance Policy With Return Of PremiumApril 9, 2021
Want to get your money back from your life insurance policy? Consider getting a Term Life Insurance Policy with a return of premium rider. A Term Insurance Policy with a return of premium rider allows the premiums paid to be refunded back to the policy holder if the the policyholder doesn’t die during the stated term of the policy. This can effectively reduce the policyholder’s cost to zero. The return of premium rider will cost more that a regular term policy as it adds additional cost to the premium of the policy. This policy also called a Return Of Premium Life Insurance Policy.
Term Policy With Return Of Premium Can Potentially Cost You Zero
This type of policy “Term Policy With Return Of Premium” is unique in that it can potentially reduce your policy cost to zero. So what is the catch? The catch is that the policy holder must outlive the stated term of the policy. For example if the policy has a 30 year term, the policy holder must outlive the 30 year term in order to get the refund of all premiums paid. If the policy holder dies before the 30 year term expires no premium will be refunded. If the insured however dies during the 30 year term, the face value of the policy will be paid to the beneficiary.
Most Seniors Will Not Qualify For A Term Of Policy With A Return Of Premium
Most seniors over the age of 65 will not qualify for a Term Life Insurance Policy With Return Of Premium as most of these policies are written for people under that age. Keep in mind that if your have a term policy that expires at a particular age or term, if you live beyond the term of you policy you may end up with no coverage. Some policies may offer a conversion to a whole life policy at the end of the term. This may or may not cost you more on your premium along with a reduction of your policy face amount.
Considering A Term Policy With A Return Of Premium?
If you are considering a term life insurance policy with a return of premium give us a call and we will ask you a few questions to see if you initially qualify. All applications will be done over the phone and no one will visit you at home. You will be ask a series of health questions during the application process and no medical exam will be required. Approval will only take a few days and you will be called as soon as the policy is approved. The insurance company will post mail you your life insurance policy within 10 business days after you have been approved.