Term Return of Premium - Is it Worth It?

By W A Henderson
Most of the American population is grossly underinsured when it comes to life insurance so is a term "return of premium" policy worth the cost? It is a good question isn't it? Term life insurance is the cheapest way to purchase a life insurance policy because the insurance company is only offering protection for a specified length of time called the term. If there is a downfall or short coming on the part of a term life insurance policy it is that at the end of the term you have nothing unless you converted to a whole life product through your convertibility clause. This is why it is important to make sure when you buy a term life policy that it is convertible and renewable.

How would a term return of premium (also known as ROP) life policy change any of the short comings of a term life policy? Well let's say for example that you had a term return of premium policy and that you were 35 when you purchased it. Now let's also say that it was a 30-year term (meaning it stops in 30 years) and that your monthly premium was 25.00 dollars. That works out to 300.00 dollars a year and over the whole 30 year term it will cost about 9,000.00 dollars. With an "ROP" policy if you out live your term, you get a large amount of your money back or if you are with the right company you can actually get it all back. Now to complete our example let's say that you did outlive your term and that a couple of days after your 65th birthday you received a check in the mail for 9,000.00 dollars. You have to admit it would be a real nice start to retirement, but you also had your life insurance for 30 years and it did not cost you a dime.

I truly hope this example will help you understand what a term return of premium (ROP) life insurance policy can do for you. While the premiums may be more than a traditional term life policy there are definite benefits to having them. Just make sure that you ask your life insurance agent what percentage of your premiums you will be getting back if you do out live the term.
WA Henderson invites you to experience this relaxing website for your life insurance needs.

http://www.LifeQuotes4You.com where you can get quotes from" A" rated insurance companies instantly. All you have to do is choose the company you want to do business with, buying life insurance has never been easier.
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