Return of Premium Term Life Insurance
There’s a term life insurance policy that offers poor savers or risk-averse investors a guaranteed return and it’s becoming very popular.
What is this product and why is it so attractive? Well, believe it or not, the product is a life insurance policy that offers a full return of premium (ROP) - even if you don’t die!
For people who are just starting a family, ROP is very attractive because ROP provides the peace of mind that comes with traditional term life, but it offers a full refund at the end of the level term life insurance period- even if you don’t die. So after you’ve paid your life insurance premium for 20 or even 30 years, the insurance company will issue a check to you, returning the full amount you paid over the 20 or 30 years - guaranteed! And, it’s tax-free!
Many new parents know they should have life insurance, but are afraid that they’re wasting money because they don’t think they’ll ever use it. With return of premium you don’t have to bet against yourself.
On average, ROP products cost 30 to 45 percent more than a regular 30-year level term insurance policy, but they offer poor savers or risk-averse investors a guaranteed return. For example, a 35-year-old healthy male (non-smoker) will pay about $810 annually for a 30-year $500,000 ROP policy. However, if he outlives his policy, he’ll get his entire $24,300 back. With a term policy, he’ll pay about $260 less per year, but to make $24,300 he would need to invest that difference and earn a 6.6 percent return for 30 years.
No wonder this new type of term life insurance policy is so popular. Click here to get a free quote or call (800) 589-0479 to learn more about return of premium term life insurance.
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