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Return of Premium Term Life Insurance

Admin — Thu, 19 Mar 2009 02:24:33 +0000

What is Return of Premium Term Life Insurance?

A Return of Premium Rider (ROP) is available on some term insurance policies. This rider returns the sum of all annual premium paid(including base policy fee and ROP rider premium) at the end of the initial term period, provided the policy owner is still living and the policy remains in force. If the policy is surrendered before the end of the initial term period, less than 100 % of the premium will be returned. The longer you wait the higher percentage you will get back. Adding the return of premium rider will increase the overall cost of the policy.

To determine if the additional cost is worth it, you need figure out what you would earn if you invested the difference. To make a fair comparison, you need to compare this with other guaranteed investments such as fixed annuities or CD’s, because the return on a return of premium policy is also guaranteed. However, if you are an aggressive investor you can use a hypothetical rate of return for your analysis, assuming you would invest the difference in a non-guaranteed vehicle.

Keep in mind that if the policy owner dies at any time during the term period, simply buying traditional term coverage and investing the difference will always provide the greatest return, because the policy owner’s estate would receive the death benefit and can also distribute the invested cash.

How Much Life Insurance

Admin — Tue, 17 Mar 2009 03:03:48 +0000

How much life insurance do you need? This is one of the most common questions for anyone who is gathering life insurance quotes on the internet. Ultimately it comes down to your personal situation and the reason why you are buying the life insurance.

One of the most common reasons people buy life insurance is for income replacement. PacLife has a handy insurance calculator that you can use as a guide http://www.pacificlife.com/Channel/Educational+Information/Calculators/How+much+life+insurance+do+I+need.htm

Life Insurance

Admin — Thu, 12 Mar 2009 02:47:39 +0000

As part of your financial planning you may be saving for retirement, your child’s education or a second home. Whatever you goals may be, an unexpected death could certainly derail your families goals with the loss of your income. No financial plan is complete without protecting against the risk of an untimely death. This is where life insurance comes in.

Life insurance is nothing more than a contract with an insurance company that promises to pay a specified amount of money to your designated beneficiaries upon your death. In exchange, you agree to make periodic payments to the insurance company called premiums. How much your premiums will be depend on several factors such as your age, gender, smoking status, height and weight, health, lifestyle and the amount of life insurance.

You can get a preliminary quote by filling out our quote request form.

What is Term Life Insurance?

Admin — Wed, 11 Mar 2009 00:32:41 +0000

Term life insurance is the most basic and least expensive type of insurance policy. The purpose of a term life insurance policy is to pay a lump sum to whoever you designate as your beneficiary, in the event of your death. You select the death benefit and the period of coverage. You can select from a one year term period all the way up to a 40 year term period with periods in between of 10, 15, 20, 25, 30, etc. Some companies even have what are called off term periods, such as 21 or 22 yrs. The policy protects your family by providing money to replace your income, pay off the mortgage, pay for college or anything that is needed.

There is also a version of term life insurance that will return one hundred percent of premiums paid to the owner, if the insured is still alive at the end of the term period. This is called return of premium term life insurance. Return of premium term life insurance is typically available for 10, 15, 20 or 30 yrs.