SDI Productions/Getty Images Return of premium life insurance is a type of life insurance that will refund what you’ve paid in premiums, if you outlive the time limits of your policy. It is a form of term life insurance. Learn how return of premium life insurance works and what you can expect to pay for it. It may be helpful to know the pros and cons of this option, as well as what other alternatives exist. What Is Return of Premium Life Insurance? Return of premium life insurance is a type of term life insurance, available either as a standalone product or as an add-on to your policy, also known as a rider. Term life insurance usually provides a cash payment (known as a death benefit)...
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Life Insurance Corporation (LIC), the country's largest life insurer which offers various insurance policies like terms insurance policies, money back insurance plans, pension plans and health insurance plans also offers endowment insurance policies. Endowment plans offer a combination of protection and savings, LIC said in a press release. LIC's Jeevan Labh Policy is one of the endowment insurance policy being provided by the state-owned insurer. LIC Jeevan Labh policy provides a lump sum amount to the policyholder at the time of maturity of policy, and financial support for the family in case of death of the policyholder before maturity of policy, according to LIC. Here are details of...
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Term Life Insurance Premium Will Undergo Correction Shortly Term Life Insurance is a kind of life insurance that offers a specific coverage amount for a particular time period. In case of death of the insured during the specified time period while the policy is active, the death benefit is received by the nominee. If the insured dies after the expiry of the specified period, no coverage is paid. Term life insurance is less expensive than permanent life insurance as a term life policy does not have any cash value. As most of the term life insurance policies expire before the need to pay death benefit arises, so the risk associated with these plans is less than permanent plans. This is the...
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Modified Premium Term Insurance What is Modified Premium Term Life Insurance Coverage? It’s a type of temporary life insurance plan that provides premiums that change over time, usually in 5 or 10 year intervals. Some modified premium plans provide term insurance up to age 90, with changing (modified) premiums every five-year period. This may be referred to as an age-based pricing model of adjusting premiums that increase each five-year period. For Example: You may pay $15 dollars per month for your term life policy the first five years, then the premium may increase to $16.50 then next five-year period. The "modified" part of modified term life insurance...
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Term Life Insurance Term life insurance is commonly known as an inexpensive and basic coverage. It is also a type of insurance that is easy to understand. Simply put, Term Life Insurance is a life insurance policy that pays a benefit in the event of the death of the insured during a specified time period. Term life insurance gives you all the coverage you need and none that you do not. That is why it is usually the best choice for almost everyone. This policy type is effective for a specified or designated period of time. That length of time designated for the policy to be in effect can be one year, 10 years, 20 years, or even up to 30 years. You should choose the policy with the term...
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Return Premium Term Life Insurance Return premium term life insurance is a new type of term life insurance policy that provides both a death benefit and a return of premium feature within the same policy. It’s easy to understand: If you keep your policy for the full term period, for example 10 or 20 years, at the end of that time the life insurance company that issued the life insurance policy with the return of premium feature returns to you all of the premium that you paid for the insurance policy. There's usually some partial return of premium for policies canceled before the end of the term (depending on the year it’s canceled – the longer it’s kept in force, the higher...
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Term life insurance is a fairly pure type of life insurance (no cash values normally, and premiums rise as you get older) intended to cover temporary insurance needs. Temporary doesn’t necessarily mean short term however, as term life insurance can provide coverage to age 65 and beyond. You might consider term life insurance to cover such things as mortgage debt, key man and business insurance, or paycheck replacement to ensure your dependents can continue to live in their current lifestyle upon the death of a breadwinner. Another way to look at this is that term insurance coverage is suitable for needs that will likely disappear before your death. Term life insurance is less well...
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Term Life Insurance: What You Need to Know Before You Buy Over their careers, physicians generally purchase large amounts of term life insurance. Term life insurance, for the most part, is a commodity, so the pricing is very competitive and comparison shopping is easy. So, why is it that so many physicians have the wrong type of term life insurance and/or are paying significantly higher premiums than they should be for their policies? This article will serve as a guide to help you purchase the right type of term life insurance at the lowest cost to meet your individual needs and goals. Term life insurance provides pure insurance protection and does not build cash value. It allows you to...
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Then, your term life policy worked – it provided you with the protection you needed for the time period you needed it, at the lowest cost to you. The answer is “it worked”. You provided the protection during the years it was needed and you’re still around to enjoy the party. However, if you want your money back after your term life policy expires, you may want to look into return of premium term insurance. If you outlive the term (duration) of your life insurance policy you get all of your payments back, tax free. You get to enjoy the party and you will have provided that protection for free. However, the premiums you pay for a return of premium term life insurance policy are higher...
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Our last post introduced you to the basics of life insurance, and whether it is something that you need. Today we will walk you through the difference between term life vs whole life insurance, which are two of the major types of life insurance. The reason we are so fired up about life insurance is because not having it caused our family to have a financial catastrophe. The truth is that when our father was diagnosed with brain cancer at the age of 32, he was one day into his new marriage and wasn’t a good candidate for insurance since he didn’t have financial dependents. Unfortunately, his diagnosis prevented him from getting coverage after he had kids and really needed the...
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