Return of Life Insurance Premium offers a solution which rewards people for staying alive by giving them the entire amount of premiums paid.
Return of premium solves the biggest mystery about term life insurance. If the policy holder lives longer than the policy period all of his premiums are paid back to him. The return of premium policy would cost more than standard term policy but would return all the payments in premiums at the end of 30 years if the policy holder is alive at the policy expiry period.
Return of premium solves the biggest mystery about term life insurance. If the policy holder lives longer than the policy period all of his premiums are paid back to him. The return of premium policy would cost more than standard term policy but would return all the payments in premiums at the end of 30 years if the policy holder is alive at the policy expiry period.
From this it is easy to conclude that the returns of premiums cost nothing but one needs to evaluate whether it is actually true. The fact is that return of premium may cost more money than it saves. Taking into account inflation there is a substantial price to be paid for unused return of life insurance premium policy. It is always important to keep in mind that amount of interest which could be earned on the money could be used for a period of time, not only because policy holder earns that money but also it makes the business profitable for insurance agents and brokers.
The additional cost of return of premiums also varies in standard insurance. For a 30 year term period return of premium costs as much as 50% more than a standard policy. For 10,15 year period it can cost up to 200% because insurance companies have less time to make an investment and earn interest themselves.
An individual who wants to consider investing premium life insurance might want to purchase a standard term policy and invest the difference for him/her.
The additional cost of return of premiums also varies in standard insurance. For a 30 year term period return of premium costs as much as 50% more than a standard policy. For 10,15 year period it can cost up to 200% because insurance companies have less time to make an investment and earn interest themselves.
An individual who wants to consider investing premium life insurance might want to purchase a standard term policy and invest the difference for him/her.
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