Return of premium life insurance policy

[fgs]

What is the name of your state? AL
This is not a legal question per se. I would like to know if anyone has an opinion on return of premium term life insurance policies where they promised to give back the preiums you paid at the end of the policy term. Thanks in advance.

 

[seniorjudge]

What is the name of your state? AL
This is not a legal question per se. I would like to know if anyone has an opinion on return of premium term life insurance policies where they promised to give back the preiums you paid at the end of the policy term. Thanks in advance.

I think it's fine.

 

[Dandy Don]

What company offers these? What is the face value/payout value of the insurance policy and how much are the premiums?

 

[Betty]

There are now some ins. companies offering a return of premium term life ins. policy. It's a fairly new product - it offers the advantages of a regular term life ins. pol. (ie less cost than whole life coverage with full amt. of pol. being paid at death - if death before end of term) & with 100% of the premiums paid back to you at the end of the guaranteed level term period if you don't use your coverage. The co. does charge some more for it than the traditional term ins. pol. & the co. invests part of the premiums paid for capital growth. Therefore, they can return the prems. at the end of term period. You can usually take a term of 10, 20 or 30 years but each co. is different. The pol. does not build a "cash value" - just a return of premium at the end of the term.
It is always best to discuss your ins. needs with an ins. agt. - each persons individual's needs are different & an agt. can help you decide on a policy that is best for you.