Return of Premium, perhaps the best deal in Insurance.
Imagine wanting to get insurance for a new electronic item that you have. You look around and find different sources and then suddenly you come across something that almost sounds too good to be true. What you found was an insurance policy for your beloved item that tells you that if you keep your item for a certain amount of time, pay your premiums on time, and don’t file any claims for damages, they will completely refund all of the money that you paid for the policy. Now you will be covered for damages during this time and if you should have a loss you will be completely covered. There has got to be a catch right?Add paragraph text here.
Well there is a life insurance policy available called Return of Premium that offers just that. This will get you a life insurance policy at a competitive rate and if you don’t make a claim during a period that it’s in force, then when the policy ends, the life insurance company will completely refund all of the payments. Now there is a catch, this policy is a little more expensive than term insurance, but you will be refunded everything that was paid when the policy ends. All of your money will be refunded to you with no worries about your coverage and no hassles about the cost of the insurance eating up your premiums.Add paragraph text here.
I recommend this policy to clients who have the ability to put their payment on autopilot and let it be withdrawn for the life of the policy. It’s a win-win situation for them. They get the coverage that they need, if they need it and if they don’t they get all of their monies refunded. The policy will lapse after the time frame that is associated with the coverage, then it is up to the covered person weather they want to just drop coverage all together or picking up a final expense policy to cover the expenses that they may have. The policy will be about the same amount per month, but the coverage amount would be lowered, because the need for coverage during this time period will usually have lowered as well. A good example would be a parent or parents who take out insurance to cover their income loss for the time that their kids are growing up. Once the kids have been able to support themselves there isn’t the same need to replace an income should they suffer a loss during this period. Now should a loss occur the coverage is there to provide the income replacement that the family would need.Add paragraph text here.
I don’t recommend this solely for retirement to my clients, but this would be a minor windfall for the family to receive a lump sum check from a life insurance policy while they are still alive. There are a few major companies that offer this type of policy, there is even a company that has a whole life policy, American National, that will allow you to keep the policy if the need is still there, such as the birth of a child that happened later for the parents that might have been unexpected. This policy will give you the option of having a full payout or keeping the policy until it is needed.
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