But of course, everything has a price. You’d have to pay more for this money-back feature. It would usually be around 30%-60% than the regular term life policy with the same coverage. It’s a good idea to consider how much you can possibly gain first by buying the regular term life policy and just saving the difference. Another thing to consider is you won’t be able to gain an interest on your money with this kind of insurance policy.
Other things to consider:
- Depending on the policy, you may or may not be able to get your money back if you cancel or stop paying your policy before the end of its term.
- There may be a minimum amount of coverage that you have to buy. For example, $120,000.
- Return-of-premium-life insurance is usually added as a rider to a term life policy.
Just like regular term life policies, you can convert term to a whole life insurance policy with a return-of-premium policy. It may be going to be more expensive but it is a convenient way to keep your coverage if you decide that you’d want a permanent policy later on.
Each one of us is different, and everyone is going to need a different coverage based on their family needs. A return-of-premium-life insurance policy may or may not be right for you. As most of the time, an ROP isn’t really the best choice especially if you want to save a lot of money. If you have any questions about return-of-premium-life insurance coverage or other options that may be available to you, talk to us.
At Jonathan Leonard Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (302) 887-9025 or Click Here to request a free quote.