More about Return of Premium Life Insurance

Return of premium life insurance is the unique kind of term life insurance that will guarantee to return all of your premiums, tax free, if you keep your return of premium insurance policy until the end of the term period. So, for example, if your premium is $500 per year for a 20 year term period and you keep your return of premium policy for the 20 year period you would get back $10,000, tax free, after the 20th year.To get instant return of premium life insurance quotes online without any personal information transmitted, click here.

If you cancel your return of premium life insurance policy before the end of the term, you still may get some of your premiums back tax free depending on the year that you cancel. For examples: If you cancel in the 15th year of a 20 year return of premium term life policy with one company you would get back about half of what you put in. Of course if you keep the return of premium life insurance for the full term you get all your money back.

Why do people get return of premium term life insurance policies?

Because they can have low cost life insurance and get rewarded for keeping the policy by getting all their money back instead of having it go away.

There are really just two general kinds of life insurance policies:

1. Permanent life insurance, which is meant to last for one’s whole life such as whole life insurance or universal life insurance or

2. Term life insurance which is life insurance for a specified period of time.

Term life insurance is less expensive because it covers a possibility while permanent life insurance costs more because it covers an eventuality i.e. something that will happen versus something that might happen.

One of the objections to term life insurance is that when one outlives it the premium has been wasted. Return of premium life insurance is a way to answer that objection. At the end of the term period, if one has outlived the insurance, you get all your premiums that you paid, back, tax free. The return of premium is tax free because the money returned is considered a return of one’s own money and there’s no gain.

How to choose a return of premium life insurance policy

Choosing a return of premium life insurance policy is similar to choosing any life insurance policy. Here are some of the quick steps to remember:

1. Primary is having a strong life insurance company backing the life insurance. You should check the financial ratings of the company which can give you an idea of what the independent rating services think of the company. To learn more about life insurance ratings click here.

2. Just like term life insurance the next step is price. Assuming you are comfortable with the life insurance company then get quotes and see who is lowest in price then click apply now and we’ll get you started. It’s that easy.

To get instant return of premium life insurance quotes, click here.

To learn more, click one of the following:

Term Life Policies
Return of premium
Whole Life Policies
Universal Life Policies
Survivorship Life (Joint and Survivor)

To get a quote for life insurance, click one of the following:

Term life Quote
Return of premium Quote
Whole life Quote
Universal life Quote
Survivorship life Quote (Joint and Survivor)