Return of Premium Life
Insurance and Cash Value

Life insurance premiums can vary significantly based on numerous factors.  However, ROP Life and cash value are two factors that can really bump up life insurance premiums in a hurry.  Return of premium pretty means that you get the entire premium back that you have paid in as long as you keep the policy throughout the entire contract.  An example of this would be keeping a 20 year term life policy the entire time and then getting the premium back after 20 years and not exercising the benefits (dying).

Several life insurance questions we ask individuals when considering a life insurance policy are:

  • How long do you intend to keep this policy?
  • Do you think the need for life insurance will change dramatically in the next 5 years?
  • Are you the premium payer on the policy?
  • Have you considered Term Life Insurance vs Universal Life?

Each of these questions plays a role in understanding what type of coverage an individual is looking for.  Sometimes someone wanting to leave an inheritance, some are looking for a way to stash up a pile of money tax free, and others are looking for a way to provide an income for family members after they have passed away.  The answers to these questions help us review an individual’s specific needs.

If you are just interested in a quote on term life insurance we recommend reviewing one of our term life insurance calculators.  These programs will give you quotes on term life with or without return of premium.  In case it was not clear earlier in the article, we do not recommend purchasing ROP Term Life Insurance if an individual is not planning on keeping the policy the full length of the contract.  The only way the insurance carrier will return your premium is if you keep the policy.

senior division manager Article added 08/16/2011 by Ryan Eaton
Senior Division Manager: Morgan White Group

For more info about Term Life Insurance, please feel free to contact me.
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