Premium Insurance Costs

Return of Premium Life Insurance ?
Return of premium life insurance is a newly introduced term life insurance policy that provides both death benefit protection and a return of premium insurance feature. Return of premium life insurance is a type of term life insurance policy. Return of premium life insurance, also known as ROP term, combines two features not ordinarily found in a term policy: a set term of insurance and a cash investment return on the policy premiums paid into the plan.

The concept is that the policy returns the premiums you have paid for coverage over that fixed term period if coverage is never used.Return of premium life insurance offers a solution that rewards people for staying alive by giving back the entire amount of premiums paid.

Return of premium solves the biggest complaint about term life insurance, in a neat and simple way. If the policy holder outlives the policy, all of his or her premiums are returned.

Advantages of Single Premium Life Insurance
Single premium life insurance is a type of whole life insurance that is unique in that it requires only one large single up-front payment. Normally, a whole life insurance policy is paid through regular installments. Because a whole life insurance policy has a built in savings component that accumulates alongside your insurance coverage, it is used by many as a savings medium.

In a traditional whole life policy, this cash value builds from your regular installments which generates returns, and in some cases, dividends. Simply put, the more cash value you have built up, the more interest you generate, plus you are entitled to more dividends. With a single premium life insurance policy, the cash value that would otherwise take years to accumulate, begins appreciating immediately.

The Products
The advantages of a single premium life insurance policy are numerous. Since this is a variation of a whole life policy, it guarantees that the insured does leave behind a death benefit. Since the benefits paid are not taxable, transferring wealth this way for a future generation can be a great option. In many cases, the amount deposited results in twice in death benefits.

Having a policy that accumulates cash value can have other benefits as well. In the event the insured individual decides to surrender the policy, they are entitled to it’s cash value, with some policies even guaranteeing that the cash value to be no less than that the one time deposit. Also, this means the policy can be borrowed against for those who would rather not forfeit their life insurance coverage but still need to access the cash value.

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