With the state of our current economy being what it is, we are all looking for ways to save some money, right? Have you ever heard of term return of premium? It is most often referred to as "ROP" or just return of premium life insurance.Do not get confused by the name; it is just a term life policy just like any other term policy. The one difference being that term return of premium (ROP) will give you back a huge percentage of the money you paid for the policy if you out live the term. Then you would actually have been covered with life insurance and paid next to nothing for it. In fact, there are some "A" rated carriers that return 100% of the premium. This would probably be the cheapest way of having life insurance unless you can find someone who is willing to pay for your policy for you.The other great advantage to these (ROP) policies is the forced savings plan if you do not pass away. What is that suppose to mean? Imagine, if you will, that you purchased a 20- year, … [Read more...] about Term Return of Premium Life Insurance For Free
Return of premium in life insurance
A return of premium life insurance is a type of standard life insurance. It promises to pay you back any premiums that you have paid over a fixed time period if you never use the coverage. The rate of return on this type of policy does not compare favorably to other investments and it is more expensive than standard term life insurance policies. It also is negated if the policy is cancelled at any time. If you keep the policy for the required number of years, you are guaranteed to get all of your money back.These policies are new to the insurance industry and seem to be catching on quite well. Not only do they provide a death benefit but also a promise to pay back any premiums paid. This attracts many people because they feel that they aren't going to die and they will get rewarded for staying alive for a certain number of years. These policies are set up like other term policies, with a time period of 15, 20 or 30 years. If you don't die during this time, the insurance company will … [Read more...] about What is a Return of Premium Life Insurance?
What is Zero Premium Life Insurance?Zero premium life insurance is meant to be marketed to seniors, probably between 65 and 85 years old. It is a permanant life insurance product, probably universal life, with a face value of $50,000. Investors will pay the premiums in return for a signed agreement from the insured. The agreement will specify that upon the insured's death, the investors will get $35,000 of the death benefit, but give the insured's beneficiaries $15,000.So, essentially, the insured person would have a free final expense product, with enough face value to pay for a funeral and settle debts. Final expense insurance is a hot market for seniors, who become concerned about leaving their spouses or children with the cost of an expensive funeral. The senior citizen may also want to leave their spouse or children some money to settle debts, pay off a car, etc.So why is Free Life Insurance Bad?Well it sounds great. As an insurance agent, I would love to visit with senior … [Read more...] about Is Zero Premium Life Insurance A Scam or a Slam?
Life insurance doesn't necessarily mean that you have to keep paying the premium every year. There are single premium life insurance (SPLI) policies as well, which provide similar benefits of protection and savings as the regular premium ones. The term of SPLI policies is usually 10 years, but one can exit after five years. However, as an SPLI policyholder, are you getting the various tax benefits these policies are eligible for? Will your policy be eligible to claim Section 80C benefit and will the maturity proceed be tax-free? Remember, not all SPLI policies are structured to help you avail such tax benefits. So before you lose out on such benefits, it's better to be aware of the tax rules. Being a life insurance policy, SPLI too qualifies for tax benefits, both under Section 80C (at the time of investment) and for making the maturity proceeds tax-free under Section 10 (10D). But one needs to be little careful while buying such policies, otherwise both these benefits might not be … [Read more...] about Is your single premium life insurance policy eligible for tax benefits?
What exactly is Term Life Insurance?Term life is a form of life insurance where you're covered for a number of years - the number of years is called the term. Term life insurance policies can be for as long as 30 years or for 20 years, 15, 10 or 5. After those years the policy can either be over or it can be renewed at a higher price based on your age at that time.What's the best way to utilize term life insurance?Term life is very good to have a lot of insurance - for now. It makes sense if you have kids at home who are dependent on your income coming in for years to come for their living expenses. Also, a spouse, even if working, would have a financial hardship in case of your death. If you can't develop the funds for permanent life insurance like whole life insurance then get the most term that you can.Are there "stores" for term life insurance on the web?Yes, but they are not all the same:a. There's the sort that asks for information about you which is marketed to agents as a … [Read more...] about Finding Term Life Insurance Online