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Term Life Insurance covers
you for a specified term (from 10 to 30 years, in most cases). If
you die within the term, your beneficiary receives the stated
death benefit of the policy.
If
you are still living at the end of the term, protection ceases
unless the policy is renewed. There is no "accumulation"
element, or cash value with term insurance.
Many term life insurance plans can be converted to
permanent life insurance plans without evidence of
insurability. Some term insurance policies do offer a return
of premium.
Return of Premium Life
Insurance is a newly introduced term life insurance policy
that provides both death benefit protection and a return of
premium insurance feature. It’s simple to understand: If you
keep your policy for the term period, at the end of that time
whether 15, 20 or 30 years, the life insurance company that issued
the insurance with the return of premium policy returns all or some of the
premium that you paid for the life insurance. There also is 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 , the higher the amount of the return.)
Return
of Premium
Insurance is aimed right at one of the greatest objections to
traditional term life insurance: “I am probably not going to
die, and my money will have been wasted." When you buy
insurance with a return of premium option, you do not have to
waste your money. Unlike regular term life insurance, Return of
Premium term life insurance rewards you for living by offering a
guaranteed return of your total cumulative premium paid on the
policy during the level term period. |
Return of Premium Rider
