Imagine receiving all your money-back that you have paid for your Life Insurance premiums over the years. Your beneficiary receives a death benefit if you die, but if you live out your policy then the insurance company returns all of your premiums!…It’s called Return of Premium Life Insurance and it handles one of the biggest objections people have when buying term life insurance.
Return of premium life insurance gives you all the benefits of a traditional term life insurance policy, plus the additional benefit of having all of your cumulative premiums paid back to you at the end of the policy period. Return of premium may also be referred to as cash back or money back. Both of these products literally mean the same thing, all premiums paid are returned to you at the end of the policy period.
Though return of premium insurance has obvious added benefits to a traditional term policy, the guaranteed protection followed by a full refund of premiums, there is one downside to these types of policies. This protection comes at a price. Opting for ROP or return of premium will come with added costs over a traditional affordable term life insurance policy.
ROP and term life insurance rates are based on your health and lifestyle which is evaluated during the underwriting process. Each company has its own guidelines used in determining risk factors and price.
Spectrum Insurance Group advisors will work on your behalf to find the company that will offer you the lowest return of premium rates.