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Return of Premium Plans for Savings

Few people are aware of how truly significant a decision it is to apply for a Return of Premium Life Insurance Plan.

With these plans, a term life insurance plan gains more value when the insured knows that, as long as they keep up the premium payments and where no death benefit has been paid by the end of the policy term - which is usually 20 or 30 years - all premiums they have paid on the base coverage of the policy, meaning excluding payments for riders, etc, will be returned to them in a lump sum payment (less administrative fees in most cases).

So, what does this mean for the payor and/or insured if they are or are not the same? This means that what could have been a plan that terminated at the end of the policy term, offering no financial return, is instead available to be used for gift-giving at birthdays, graduations or weddings. Or even for their living expenses. A portion of this return payment can also used for purchasing a new insurance policy at term end, so they won't have to come out of pocket to pay the initial premiums.

What it also means is that, in most cases, there is no requirement of Evidence of Insurability when applying for further coverage with the same insurer. And that means that the insured will automatically qualify for this new coverage at the end of the initial policy term, despite any illnesses or disabilities that may have occurred during the interim.

Call our broker today to see why so many people who qualify and that find them affordable are purchasing these plans for themselves, their children and others on whom there is an insurable interest. Call it a Living Benefit, as it pays the face amount at death, but returns these base premiums if the insured lives the full policy term.

Call today!


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