There are many A+ rated life insurance companies that have policies that will give you back all of your premiums. It may sound too good to be true, but what I’m talking about are return of premium term policies. It costs more to add this feature to your term life policy, but the added cost can mean that you can essentially get your life insurance policy for free.
So how does it work? It’s very easy. If you outlive your term policy, the insurance company will send you a check for all of the premiums that you paid into the policy. For example, let’s say you buy a $250,000, 20 year term policy with the return of premium feature. Let’s assume that your premium is $100 per month. You pay your premiums on time every month, and after 20 years you are still alive and well. At that point you would have paid $24,000 in premium payments, so the insurance company will send you a check for $24,000. You can use that money to buy a paid up policy or do whatever else you want with it.
Statistics show that only about 1% of term life insurance policies actually pay a death benefit, so there is a high likelihood that you outlive your policy. If you can afford the extra premium for the return of premium rider, then I think it’s a great way to essentially get your life insurance for free. You can have peace of mind in knowing that your family is protected if something happens to you and if nothing happens, then you can look forward to a nice check.
Get a free quote for this type of life insurance today and compare multiple rates from the nation’s top carriers.
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