Life Insurance Policies with Return on Premium

The main reason why many people aren't happy about term life insurance is because they will not be able to get the insurance premiums that they have paid over the years should they not pass away within the prescribed time frame that their policy is still in effect. However, you would be happy to know that insurance companies have acknowledged this fact therefore they are also offering return of premium life insurance.

This is just like term life insurance no medical exam minus the flaw of not getting all the insurance premiums paid. This means that a return of premium life insurance policy holders would be able to get back everything that they have paid if they will not pass away until the expiration of the contract.

Nevertheless, just like everything else in life, this type of policy has its own set of drawbacks that you would need to look out for if you want to make sure that you will get your money's worth.

The fact is, term vs whole life insurance is a lot cheaper. However, this is no longer true in the case of return of premium life insurance. There is a big chance that you will pay more than 25 to 50% of what people with regular term life insurance do. This means that you could end up paying hundreds of dollars more per year.

You also have to see to it that since you are putting a lot of money towards insurance, you would be able to get at least a good return from your investment. There are a lot of investment tools out there that could very well earn you more money than making big premium payments.

Lastly, there are insurance policies that might end up giving you nothing because you have broken one or two rules. Knowing the terms and conditions would do you good.

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