Return of Premium

A lot of negative things can happen in our life, and this is the main reason why we need to be protected with a good, expansive insurance policy. The return on premium life insurance is a very interesting type of insurance in which the insurance company will return the premiums that a person has paid for the coverage if and only if that particular person will survive the policy term. This basically means that you have the opportunity to get full protection in case you need to cover medical expenses and, if you reach the policy term, you can even get some of your money back without a problem.

The return on premium can be widely regarded as the return of principal which is not taxed, as the revenue was your principal to begin with. The return of principal can be seen in your tax documents as a deduction and the net income from it will be zero.

Many people tend to see the return on premium life insurance policy as an investment, because the rates of return are calculated based on various incremental costs that are added to a regular term insurance. Policy returns can usually be found in the 2.5 to 9 percent range. Also, if the person needs to receive some money back while the contract is still active, the insurance company can offer some prorated refunds. However, these prorated refunds are usually at a lower imputed value than the original payment should be in the first place.

The return on premium life insurance can be used in various types of situations, either if a person wants to have an investment while also being fully protected from any type of incidents and disasters, but it also brings a lot of value to persons that are going through a divorce, as it can help the person that has to pay for alimony and child support to cover any medical costs that might occur.

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Protecting your family from long term expenses like a mortgage, child education or even a home equity loan is essential, and the return on premium life insurance allows you to do just that. In fact, it’s one of the simplest and easiest to use types of loans that will help you cover lots of expenses that will appear out of the blue during your life.

Usually, the return on premium life insurance comes with a term length of around 20-30 years and it will cover amounts much larger than $100000.

In conclusion, the return on premium life insurance is one of the best types of insurance that you can opt for, since it offers both an investment and protection for the whole duration of the contract. This is one of the best types of insurance that you can adhere to nowadays, and we recommend it for anyone that wants to take full advantage of the aforementioned benefits.

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