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) if you die within the specific...
Continue reading...
Before seeing return-of-premium (ROP) term life insurance two years ago, Jay Taussig, a financial advisor in Denver, Colo., didnt want anything to do with selling term insurance. Today, though, roughly 50% of his life insurance business is in ROP term policies. (His total life production represents approximately 20% of his total business.) Meanwhile, term insurance companies who offer ROP features in their products say the ROPs are selling briskly. For example, Fidelity & Guaranty Life, Baltimore, Md., has been offering a mortgage term life policy with a ROP rider since 1999 and a brokerage term product with ROP since 2001. Today, term with ROP sales represent two-thirds of all newly...
Continue reading...
Life insurance: Term plan with return of premium unviable Having adequate life insurance protection in place is a necessity in today’s day and age. It ensures that the dependent family members are not left in the lurch in case of the policyholder’s sudden disability or demise. That said, it’s always wiser to keep insurance and investment separate. As such, it might be a better idea to go with a standard term insurance policy than traditional life insurance products like endowment plans that offer relatively lower sum assured at higher premiums. The funds saved by opting for a term insurance policy can be invested according to one’s returns expectations and risk tolerance to earn higher...
Continue reading...
If you outlive your life insurance policy, can you get your premiums back? In most cases, the answer is no. However, a return of premium life insurance policy is the exception. This life insurance product allows policyholders to collect a refund of the premiums they have paid. This can sound very appealing, but before you buy life insurance, it’s important to understand the pros and cons of return of premium life coverage, as well as your alternatives. Return of Premium Life Insurance vs. Traditional Term Life Insurance Return of premium life insurance, or ROP life insurance, is a type of term life insurance policy. Like other term life insurance policies, it is written to cover a specified...
Continue reading...
Why Term Life Insurance Is More Affordable One of the reasons term life insurance is typically more affordable than whole life is that most people outlive their terms. People tend to purchase term life when they start families or buy their first homes. Usually such people are usually in good health. That makes it less risky for insurance companies to cover them. Another reason companies are able keep term life premiums lower is that is that premiums are almost never refunded. This is normally the case even if you cancel your policy. So in most cases you shouldn’t expect any money back after your term expires. Special Exceptions There are a few instances when you may have term life...
Continue reading...
Canara HSBC Oriental Bank of Commerce Life Insurance launches iSelect Smart360 Term Plan – Check details Term Life Insurance: Canara HSBC Oriental Bank of Commerce Life Insurance has come up with a new term insurance iSelect Smart360 Term Plan offering comprehensive protection. It is a flexible term plan that is suitable for all life stages & requirements of a buyer. The plan offers pliability to choose from three available plan options depending on personal needs: Life Secure offering life cover, Life Secure with Income offering survival income benefit in addition to life cover and Life Secure with Return of Premium that offers return of premium on outliving policy term in addition to...
Continue reading...
ICICI Prudential launches term plan with return of premium – Check features ICICI Prudential Life Insurance has come out with a term insurance product ‘ICICI Pru iProtect Return of Premium’. It is a customer-centric plan that will offer life-stage based cover wherein the quantum of life cover is automatically adjusted based on the customer’s life stages. The ICICI Pru iProtect Return of Premium will offer a return of 105 per cent of all premiums paid on survival, besides providing cover against 64 critical illnesses. It offers two variants – Life Stage Cover and Level Cover. The Level Cover variant is ideal for individuals looking for a term insurance plan that offers a survival...
Continue reading...
Colorado Life Insurance There are various types of life insurance but they all have some common attributes. You pay an insurance company what are called premiums. At your death, the life insurance company pays an amount to the people you named in your policy, called beneficiaries. Also it’s interesting that if you named a beneficiary(ies) they’d receive the insurance amount free of income tax. Some types of life insurance have cash benefits available while you’re living. In these types, a portion of your premium goes into a cash reserve and builds on a tax deferred basis. You can access this money, called cash value. Some people use it to help education costs, enhance...
Continue reading...
When you consider life insurance options, one type of policy that may seem like a good idea at first is something known as return-of-premium life insurance. If you don't die during the policy's term, return-of-premium life insurance refunds the premiums you paid for your policy. Score! Free life insurance, right? Actually, there’s a little more you should know. What is a return-of-premium life insurance policy? Return-of-premium is a type of life insurance that will cover you for a set number of years such as 20 or 30 years. If you don’t die during the term, your coverage ends and you get your money back. This type of life insurance is sometimes a standalone policy, or it may be an...
Continue reading...
Why term insurance with return of premium option isn't the best risk cover for you The premiums are twice or thrice those of a regular term plan Term Insurance is the best way to secure your family’s financial well-being over the long term. They’re cost-effective and simple. Every person with financial dependents must consider buying a term plan before thinking about any other investments. Pure term plans have one drawback. They don’t offer any payback if you outlive the policy term. You pay premiums for several years and don’t get anything back at the end of the term. There’s one option that’ll seem very enticing to you: TROP or Term Insurance with a Return of Premium. TROP is a type of...
Continue reading...
