How does Return of Premium Life Insurance Work?

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Term Life Insurance, Renewable Term, Level Term, Decreasing Term, Whole Life Insurance, Universal Life Insurance, Indexed Universal

Hello my Fellow Insurables I'm Kelli
Arrowsmith with Arrow Final Expense and
today we're gonna go over how exactly
does return of Premium life insurance
work if you're new to my channel we go
over the best tips facts and honest
information about life insurance if you
find this helpful please subscribe so
real quick for those of you that are
unfamiliar with how life insurance Works
life insurance is when you enter into a
contract with a life insurance company
with the agreement that you the insured
will pay premiums usually monthly in
exchange for a lump sum paid to your
beneficiary when you die in turn this
protects your loved one or loved ones
from financial hardship so return of
Premium is a type of term life insurance
and as you may or may not know term life
insurance only covers you for a specific
period of time a set number of years and
here's how Return of Premium life
insurance is unique as usual if you pass away the life
insurance company is going to pay your
beneficiary a lump sum but if you don't
pass away then the life insurance
company is going to return all of your
premiums meaning all of your payments
back to you when a regular Term Policy
ends you don't get anything back and you
no longer have life insurance coverage
not something to consider return of
Premium life insurance policies are
going to be more expensive than typical
term policies at least double if not
more although I will say a return of
Premium policy is a great way to save
money return of premium policies are
typically only available to adults under
the age of 60 which means when you apply
you must be under the age of 60. now
this will vary from one company to
another and typically return a premium
policies are either 20 or 30 year terms
and as always remember each life
insurance company is going to have their
own standards and requirements when
issuing a life insurance policy now
something to note typically return of
premium policies are going to be what's
known as a level term
which means your premiums that you pay
will be the same throughout the duration
of the policy now unlike typical term
policies certain return of premium policies can
build cash value and this is unique
because usually cash value is found in
permanent life insurance such as whole
life or universal life and if you do go
with a return of Premium policy that
does include the cash value you do have
the option to cancel the policy and get
some of the money back after a certain
period of time now just as with any
other policy that's going to include
cash value the premiums are always going
to be higher than a policy that does not
include cash value so real quick let's
go over the pros and cons of having a
return of Premium life insurance policy
let's start with the pros number one
a return of Premium policy is still
going to be less expensive than a whole
life insurance policy number two if you
don't die then you're going to get all
of the premiums you've paid in back when
the policy does expire number three and
hey this is probably good for a lot of
us you're forced to save money and
number four hey it's a win-win either
you pass away and your beneficiary gets
a big lump sum or hopefully you live and
you get all of your premiums back that
you paid into this thing over a long
period of time now the cons of a return
of Premium policy are the premiums are
going to be higher than a typical term
policy number two not every life
insurance company is going to offer
return a premium coverage number three
if you miss your payment and the policy
does lapse you may not get any of your
money back now this is something to ask
the insurance company that you are
applying with now here's something to
note there is a life insurance policy
out there for everyone but everyone has different needs because
we don't all need the same amount or the
same type of coverage sure the policy that you are applying
for meets not only your needs but your
budget because if it's not affordable to
you then the policy is probably going to
lapse and that just doesn't make sense
well there you have it that is a very
simple explanation of how Return of
Premium life insurance works if you have
questions about today's topic other life
insurance topics or you have a subject
you want me to cover let me know down in
the comments as usual if you want to
continue to get the best tips knowledge
and honest information about life
insurance please like And subscribe