Return of Premium Term Life Insurance

One of the benefits of a permanent life insurance policy (whole life or universal life) is that, in addition to providing a death benefit, it can also accumulate a cash value, which can be accessed in later policy years. Term life insurance, on the other hand, provides only a death benefit. For those who don’t want permanent life insurance and don’t want to pay years of term life premiums without any return (if one outlives the policy), there is a solution. Return of premium term life insurance is term life insurance with the added benefit of a return of all premiums paid at the end of the policy term, provided you outlive the policy.

This benefit, however, doesn’t come without a cost – these policies are more expensive than traditional term life policies. For those in their twenties and early thirties, the added cost of theses policies might not be too significant and, therefore, this might be an excellent option for this group. For people older than this group, the difference between this type of policy and regular term are often great enough to make this product a not-so-attractive option.

Many of our clients choose this type of policy for their mortgage insurance needs. You can purchase a policy with a term equal to the length of your mortgage (10, 15, 20 or 30 years) and at the end of the term, your mortgage will be paid off and (if you outlive the policy) you will have the added bonus of a lump-sum payment of all the premiums you paid for the policy. If you don’t survive the policy, it will do as it was intended to do – pay off the mortgage so your family won’t have to worry about continuing the mortgage payments.

For a return of premium term life insurance quote or a cost analysis between this type of policy and a term life insurance policy, contact us or call 866-691-0100 to speak to one of our licensed representatives.