Policy Description.What the life insurance companies are doing here is adding just enough premium to a
regular term policy
that when invested would provide sufficient
cash value
to equal the total premium paid over the term period.
Let us suppose you bought a 20 year return of premium term policy and you pay $300.00 per year for the policy at the end of the 20 year term period you would get back $6000.00 if you did not die in the interim. This sounds like a good deal but let us go back to the original argument put forth by the who like only term insurance. Had you invested the difference in cost between a regular
20 year term policy
premium and that of the return of premium policy wouldn't you end up with more money?
The answer to that question is more than likely yes...if you are an investor. What about the people who are not investing any money at all...much less the small amount put into a term policy. Would they not be better off putting some money in this return of premium term life policy? They will have some
life insurance
in the event of untimely death and if they live they will get back all their money. As to whether or not this policy is for you, however, is something that you will have to judge for yourself.
This is a level face amount policy which would be paid to your
beneficiary
in a lump sum or, if you choose, in thee form of a
monthly income.
