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Basics of Return of Premium Life Insurance

Understand the basics of return of premium life insurance before committing.

A return of premium life insurance is a form of term life insurance in which you are guaranteed to either receive your death benefit or get your premium back. If you outlive the term of your life insurance policy, you can be entitled to a sum of money.

Here is a run down of the basics of how the return on premium life insurance works:

What is it?
When you purchase standard term life insurance, you select a period of coverage which can range from 5 to 30 years. During this entire period of coverage, you pay a monthly premium that is based on your age, health, and selected coverage.

Under what terms?
If you pass away naturally or from an accident, whilst the term of your insurance is active, your named beneficiaries will receive the death benefit. However, if you outlive the term of your insurance, then no death benefit is paid out. Due to many people feeling as though the premiums were wasted if they outlive their policy, the return of premium life insurance eliminate this problem. Should you outlive the policy, the money that you paid will be returned.

Who’s it for?
Those who are considering a return of premium life insurance should note that the premium tends to be slightly higher than standard term life insurance. Although the monthly payout may be more, it is guaranteed that at least half of the money you paid will be returned to you if you outlive the policy. Be sure to carefully compare return of premium life insurance and standard life insurance before committing.

Where can I get it?
If you are unsure which policy is best for you, talk to an experience agent at Michelle Lim Insurance Services Insurance in Alhambra, California. We ensure that you receive the correct life insurance policy for you and your loved ones, so give us a call today!

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