Do You Hate Paying Life Insurance Premiums?
Get A Check Back From Your Life Insurance
A lot of people hate the idea of paying life insurance premiums for term policies because they, and the life insurance company, are betting they will survive the policy. If an insurer issues you a 10, 20, or 30 year term policy, they assume that you will be very likely to survive it. If they find some illness or bad health habit that makes it unlikely you will survive, they will decline coverage as a poor risk.
Even if your term premiums are modest, the money adds up over the course of a few decades. Let us say you spend fifty dollars a month for a twenty year term policy that has a $300,000 death benefit. Over the course of those twenty years, you would have spent twelve thousand dollars!
How Does Return Of Premium Life insurance Work?
If you had a return of premium (ROP) rider on your term policy, it would work like this.
- If you pass away, your beneficiaries would collect the death benefit. In this case, the return is the face value of the policy.
- If you survive the policy, and make no claim, your premium will be refunded. In the example above, you could get a nice check for twelve thousand bucks, plus you would still be alive. This is a win-win situation.
Some policies also give you the option to include other coverage like disability or critical illness. If you make a claim on the riders, your premiums would not be refunded either. But these riders will come at an additional cost. If you do not make a claim, you get your money back on these options too.
How Much Does This Cost?
The additional coverage will cost a bit extra, and that price will depend upon the premium. Premiums depend upon a lit of things, like how old you are, how big of a policy you want, and where you live. You can get life insurance quotes online which make it quick and easy to compare different policies.
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