When you’re looking to get life insurance coverage, there are dozens of different plans that you can choose from, each of them have different advantages and disadvantages that you should consider. Finding the perfect life insurance coverage can be a difficult and confusing process, but it doesn’t have to be. If something tragic were to happen to you, your loved ones would be left with all of your debts and other final expenses. Losing a loved one is never is easy, but being left with thousands and thousands of dollars of debt is going to make the situation a thousand times worse.
Return of premium life insurance is a special type of term life insurance that can be a great option for people looking to protect their families in the event they were to pass away and make sure they do not lose the money they pay in premiums. If you are here to get quotes for ROP life insurance then use the form on the side of this page and when you select the “Term Period” make sure the number of years has an ROP next to it.
The basic principle of ROP life insurance and regular term life insurance are the same. You lock in a premium for a set number of years based off the face value of the policy, your age, and health. In the same way, if you were to pass away, your heirs would receive the face value of the policy. The big difference with return of premium life insurance is if you were to come to the end of your term without having passed away then you receive all of your premiums back as a lump sum. For example, a thirty four year old man gets a 20 year $500,000 ROP life insurance policy that costs him $1250 per year. At the end of twenty years the man did not pass away so he receives a lump sum check for $25,000 (the total amount of annual premiums he paid over the twenty year term).
The question we frequently get is, “why would anyone choose regular term life insurance over ROP life insurance?” The answer is the cost. A return of premium life insurance policy is much more expensive than a normal term life insurance policy. In the example we gave above, if that same man decided to get a regular twenty year term life insurance policy he would pay about $250 per month for the same $500,000. This means he would only pay only $5,000 over that twenty year period. The difference in cost is due to the way the insurance company makes money. With the traditional term life insurance they take your premiums and invest them in very safe investments. They do not have to pay back the money so it sits there until they need it to pay off a claim. With return of premium life insurance they take higher premiums and invest in the same investments. Even though they pay back those premiums they make up for it by collecting more from their investments over the 20 years.
When you’re looking to apply for life insurance coverage, regardless of which type of coverage that you buy, there are several ways that you can save money on your insurance coverage. Making a few simple changes can help you hundreds of dollars on your plan.
The first thing that you should do is improve your overall health. Before the insurance company approves your application, they are going to require that you take a medical exam to determine how much of a risk you are to insure. The higher risk that you are, the more that you’re going to pay for your life insurance coverage. If you want to save money, you’ll need to improve your health.
There are two main ways that you should do this, sticking to a good diet and getting regular exercise. Both of these can help you lose weight, lower your cholesterol, lower your blood pressure, and reduce your risk of being diagnosed with health complications later in life. If you want to save money, it’s time to lace up those running shoes and skip the junk food. Your doctor and your bank account will both thank you.
The next way that you can get better insurance rates is to eliminate any tobacco that you currently use. If you’re listed as a smoker on your application, you’re going to be looking at much higher premiums for your coverage. In fact, smokers are going to pay twice as much or life insurance versus what a non-smoker is going to pay for the same amount of life insurance. If you want to save money on your return of premium plan, you’ll need to kick those bad habits once and for all.
Additionally, if you use chewing tobacco or smoke an occasional cigar, it’s vital that you find the best company to meet your needs. There are some life insurance companies that are going to offer you better rates if you only smoke a couple cigars a month, while other companies are going to classify you with the smoker’s life insurance rates. Every insurance company is different, which means that you could get drastically different premiums based on which company that you get the quote from.
Because every insurance company is so different, it’s vital that you receive dozens of quotes before picking which one is going to work best for you. There are thousands and thousands of different companies on the market, which means that you could spend weeks looking to get the best plan to meet your needs. Instead of wasting your time, you should use an independent insurance agent. Unlike a traditional insurance agent, independent agents work with dozens of highly rated companies across the nation, which means that they can bring all of the best insurance rates directly to you.
Before you apply for life insurance coverage, it’s vital that you determine how much life insurance that you’ll need. Not having enough life insurance is one of the worst mistakes that you could make. There are a few different categories that you should calculate.
The first category is any debts or other final expenses that your loved ones would be responsible for if something tragic were to happen to you. The primary goal of your plan is to give your family members the money that they would need to pay off any debts or other bills that you would leave behind. Make sure that your life insurance plan will give your loved ones the money that they need.
The next number that you should look at is your annual income. The secondary goal of your plan is to give your loved ones the money that they need to replace your source of income if you were to pass away. If you’re one of the main income earners, your family would suffer financially, but a life insurance policy would give them the money that they need.
If you have the cash to pay more for return of premium life insurance it is definitely a great option. If not, you can get the same coverage with regular term life insurance. With either option you can get free and instant quotes by filling out the form on the side of this page. If you are having any problems understanding the quote please feel free to use our contact us to ask a question or to go to our page that explains term life insurance quotes. It is our pleasure to serve you any way we can.
Because you never know what’s going to happen tomorrow, you shouldn’t wait any longer to get the insurance protection that your family deserves. Planning for your own passing is one of the best ways that you can protect the future of your family. Not wait any longer to contact one of our agents and get the process started. It’s our mission to insure that your family has the insurance protection that they deserve.
Return of premiums life insurance is a very unique kind of insurance coverage. There are plenty of advantages to these plans that you should be aware of, but it’s vital that you get life insurance coverage, regardless of which kind of policy that you choose.