When you apply for a traditional Term Life Insurance Policy, you will be required to pay for a fixed premium every month for a certain period of time. If you die within the term, death benefits will be granted to your beneficiaries achat viagra online. However, if you did not die after the term, you will get nothing. What if you want to secure your family but you do not want to lose everything you have paid for should you still live after the term? You can apply for Return-of-Premium (ROP) Life Insurance.
What’s in it for me?
Simply put, you will be getting a full refund of all the paid premiums until the end of the contract should you outlive the term. Here are some things you will need to know about ROP Term Life Insurance:
- No Police Fee. You do not have to put out a single penny when you apply for ROP Term Life Insurance. The only time that you will have to put out an amount is when you are due for your first premium.
- Fixed Premium. Your premiums will be the same all throughout the term. Should you choose to continue paying premiums beyond the contract, you must be aware that the premiums will increase every year and significantly much more than your original premium.
- Flexible Terms. Just like the basic Term Life Insurance, you can purchase a coverage term such as 15, 20 or 30 years. You may extend it until you are 95 or 100 years old, depending on your insurance company.
- Tax-Free Return of Premium. Yes, it is completely tax-free when you receive your refund at the end of the contract when you have outlived your term. However, the interest and rider charges will not be paid.
- Cash Loan. If you have an unexpected event needing immediate cash, you may apply for a loan. As long as you have enough cash value in your policy, you can get your cash advance without collaterals and credit checking. Annual interest rate will apply. In case you die before the maturity of the contract, your unpaid loan plus interest shall be taken from the death benefit. If you live but did not pay back, the same applies and shall be deducted from the amount you are supposed to get back.
- Additional Protection. Yes, you may avail of a rider for an additional investment. A portion of your death benefit may be taken out in advance to cover for the necessary medical expenditures while you still live within your term. The cost of this additional investment may vary depending on your age, coverage, health condition, and many more.
- Policy Conversion. As long as you are within the covered period, you can decide to convert your policy to a permanent life policy without the need for medical testing. You may approach your consultant for their options.
The More Likely Prospects
More likely, people who are confident enough of their lives even after the chosen coverage term are the ones purchasing this type of insurance policy. However, there are some people wanting to just secure their family’s future but hoping they could have a refund if they are still alive by the end of the contract. It may depend on the insurance company and the insurance plan purchased if the policyholder will get a portion or all of the paid premiums during the covered period.
Surrendering Your Policy within Coverage Period
This policy involves lower risk than the traditional Term Life Insurance because of its ability to hand you back the accumulated premiums that you have paid throughout the contract. The only significant disadvantage with the ROP Term Life Insurance is when you decide to cancel the policy within the covered period. You will not get anything from your insurance company. So think carefully when you are considering getting this policy because it also involves a bigger investment than the traditional Term Life Insurance. If you have any plans of cancelling this policy within term coverage, you may be putting your money at risk.
Secure Your Family’s Future, Be Insured Now
During the earlier stages in your life, you only worry about yourself. But when you get to have your own family, you will begin to consider looking for ways to secure your family’s future. One of your options would be to apply for a Life Insurance Policy.
There are many types of life insurance policies. But with ROP Term Life Insurance, you will not only make your family secured in case something happens to you. It will assure you of a sound investment if you live after the contract. Aside from the death benefits, you may also use this policy for your mortgage, tuition fees, business funding, and many more. Premiums for the ROP Term Life Insurance increase from time to time. So make sure you contact your insurance consultant right away so you can get the best ROP Term Life Insurance package for you and your family’s future.