Wouldn’t it be great if you could just use life insurance during those years you need it and it you didn’t die, it wouldn’t cost anything?
Well, there’s good news for you, maybe. Return of premium term insurance does exactly that. You can take out a guaranteed level premium 15, 20 or 30 year term and if you are still around and kicking at the end, you can receive back all of the premiums you paid in over all of those years. With some policies, canceling before the end of the term can still result in a partial refund.
The premium is higher than straight term insurance, but it is an answer to the age old term insurance question, “What happens if I outlive the term.” Now there are two options. You can receive a cash refund or you can use that cash to convert to a paid up universal life policy.
Bottom line. It’s not a product for everyone, but it can be an answer, a very good answer in many personal and business life insurance situations.
This post is somewhat dated. Life insurance underwriting is changing and evolving continually. For more updated information check out some of the key word links. If you have a specific question or topic you need information for do a search. If you don’t find the answers you need contact me and we’ll make sure you get the information that is important to you.