While insurance protection can be vital to protecting your family, many can find which type to purchase confusing. Let's review the whole insurance picture for a moment: Term life insurance is the choice of many consumers because it fits the budget and simply protects young healthy expanding families during times of highest risk of loss should the income earner of the family die unexpectedly.

 

Traditional term provides a benefit for the length of the term period selected 10, 20, or 30 years after that the policy coverage ends. If the insured had passed on during the term of coverage the beneficiaries would have received a lump sum payout, but if the insured is still living at the end of the term or had cancelled the policy early, the beneficiaries receive nothing. Unfortunately after 20-30 years you may be uninsurable for more term because of health deterioration or age and may need to seek out a whole life or permanent insurance policy to protect your spouse or assets from risk during the retirement years. This form of insurance contain an investment feature which builds cash value and may require higher premiums and make the policy simply unaffordable for some. Return of premium can provide a suitable solution if it fits comfortably within the budget because it provides for a benefit for both events: A death benefit and a living benefit! 

 

What are some of the features of return of premium ROP insurance?
As we have already mentioned if you outlive the term you will receive all of your premiums back in a tax free lump sum and it is guaranteed. In addition should you need to borrow from these funds many carriers have loan provisions allowing you to borrow your own money at reasonable rates of interest and keep the coverage in place during the term period.  Many consumers are concerned that they may  cancel prior to the term ending and will lose the ROP feature they paid extra for, however carriers have already considered this as well and if you surrender the policy during the term you will receive back a prorated portion of the premium which are pre-calculated at policy inception. Another handy feature can help you keep your protection if you lost your job well into the policy term the ROP cash accumulation could be applied to provide for paid up reduced term period coverage, so if you had a 30 year term and in year 15 were injured or loss you job and were unable to pay premiums you may end up with a paid up policy for a remainder of 5 years

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Unfortunatley many consumers put off the task of seeking a quality life insurance plan early in life when policy limits are high and premiums are much lower. Eventually they see someone they care about or know go thorugh some terrible ordeal without coverage and the affects it has on the surviving family members. If they have already experienced sickness , health issues and reached senior status the ability to even obtaina policy can become a feat in and of itself. There are a few options that can protect a spouse or an adult child and provide that benificiary some financial means of dealing with living expenses or final expenses for burial of the passing loved one. These products are fairly simple and are not contingent on a medical exam but rather ask a few simple  health questions to determine that the insured is not on their deathbed so to speak. The policies  are usually issued from 40-80 years are simplified whole life policies with policy amounts under $50,000. Typically these polices offer guaranteed premiums and pay out as graded death benifits for the first two years they are in force. This means that should the insured die in year one or two the payout to the benificiary is reduced by 40% to 70%. After year two the full face amount may be provided to the benificiary. The bottom line is some protection is better than none if you have little or no reserves to protect your loved ones. For pre-approval without waisting your time or risking a rejected application and  from a carrier complete our Quick Solve Application

Consumers usually run when you mention life insurance because the thought of forking over cash for something you think you will never utilize just does not give you a warm and fuzzy feeling.  Everyone wants to be an investor or buy something with a big return.But for middle class America term life insurance is the absolute best option. If you are married have children have possessions,debts or obligations much less burial expenses how would you cover the cost and maintain your/thier current lifestyle should you lose your/spouses income. For those who just must have some sort of return insurance carriers have a product called return of premium. The policy tacks on about a 30% premium increase then reinvest the money. The insured has coverage for the length of the term say 20-30 years. If you outlive the the policy and never make a death benefit claim the insurer returns the premiums paid out over the 20-30 years. Suppose you have a 30 year mortgage and at the end of 20 years collect the return you could invest it in a whole life policy or pay down your mortgage balance. Sex appeal on a budget!

The economy and mortgage mess drove many a homeowner into forecloser over the past 24 months. Additionally many having experienced job loss and financial distress which has created an awareness for protecting ones family from the potential unexpected financial disaster of leaving the remaining family members without a safety net in the event of death of a family income earner. A growing number of current homeowners are realizing the importance of purchasing mortgage life insurance. By having mortgage life insurance in place, the policy holder can take comfort in knowing that the home will be paid off if he or she passes away. This security guarantees the remaining loved ones the ability to maintain their home as they face the difficulty of moving forward without them. Nothing can be worse than losing a spouse or parent and then be faced with piling bills, and final burial expenses or be forced to immediately sell or leave your home behind. Non medical exam mortgage protection allows for consumers who own a home to qualify for a special mortgage life policy without the need for the usual underwriting requirements of a health exam. Those who are relatively healthy can qualify with a few basic medical questions and an interview from a qualified agent and or insurance underwriter. Even those with minor health conditions can qualify with medical conditions that are under control with medications.