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Imagine
getting a money-back guarantee on your Term Life Insurance. Your
family receives a lump sum of money if you die, but if you live
the company returns all of your premiums! Now you can’t do
that with your auto insurance or your homeowner’s policy.
Believe it
or not, such a product now exists and is Return of Premium Life
Insurance. It’s just one of the innovative solutions coming your
way from some of the best insurers in the business.
Return of Premium Life 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.
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 (ROP) Term starts out like Term Life Insurance with
one extra promise from the insurer: If you pay your premiums and
you live, we’ll give you your money back. On a typical 20 year
Level Term Life Insurance policy the ROP feature could cost
about 30% more, but that extra premium will effectively earn you
a 6-7% return over the 20 years -– just enough to earn you back
everything you’ve paid in. What’s in it for the carrier?
LOYALTY! Carriers spend a lot of money to get your policy, and
only start making a profit if you stick around more than five
years or so. ROP guarantees that lots of customers stay for the
full 20. And, for those that don’t, the carrier made an extra
30% on those guys -– and used some of it to pay you a solid
return on your money. So if you know that you are going to be
insured for the long haul, then think about tossing in a few
extra dollars and getting it all back in the end.
Return
of Premium Life Insurance is an excellent choice when you work
with our Mortgage
Insurance Leads. |
