Term Life Insurance Digest » ROP

Types Of Life Insurance

The Key Man — Sat, 08 Nov 2008 00:55:58 +0000

There are a few different types of life insurance. Within those different types, there are many different purposes for your life insurance.

The simplest form of life insurance is term life insurance. Term insurance is most often used for mortgage protection, and with people that are younger. It is purchased for a specific term. At the end of the term, you can keep the policy, but the premiums are no longer guaranteed and will go up each year.

Whole life insurance is like term life insurance, except for the term and the price. It is purchased to cover you for your whole life, and the term is guaranteed to stay the same until you die.

Universal life insurance is like whole life because it’s meant to cover you for your whole life. It builds up cash value, and you can borrow against the cash value or withdraw it at different times in your life. This type of life insurance is a little more complicated. To get a policy that works right for you, you need to speak with an agent and have a clear idea of what you want. They’ll direct you toward the correct policy.

Return of premium life insurance is normally a term policy that refunds all of your premiums at the end of the term. It can be a good investment if purchased for 20 or 30 years, but normally isn’t worth the extra cost if only purchased for 10 years. (It would make more sense to get term insurance and invest the difference, even if the return on the investment isn’t that great.)

Guaranteed issue life insurance is a type of life insurance where the issuance of the policy is guaranteed. In other words, if you apply for the policy, you get it no matter what. Most policies require underwriting, but this policy does not. It is often the most expensive form of life insurance because it carries the most risk.

Return of Premium Life Insurance A Good Idea

The Key Man — Thu, 28 Aug 2008 23:54:09 +0000

Return of premium life insurance is an excellent idea. It is more expensive, but if you live for the full term of the policy then all of your premiums are returned to you. This can be an excellent way to invest your money if you get a longer policy. The 30 year return of premium life insurance policy will promise you an okay rate of return on the difference in price between the regular term life insurance policy and the return of premium life insurance policy. You could invest it somewhere else, but anyone getting a term policy should at least consider getting a return of premium policy.

Why Return Of Premium Life Insurance Is A Good Idea

The Key Man — Tue, 03 Jun 2008 20:19:23 +0000

Return of Premium life insurance is an excellent type of policy, especially if you are looking to purchase a 20 or 30 year term policy. The way return of premium works is that at the end of the term period, if you are still alive, the life insurance company will return to you all of the premiums you have put into the policy. This is great for you, because it can then be used to fund a different type of policy, or you can just pocket the money.

The only thing that may be a potential downfall with this type of policy is that it costs about three times more. So if you have extra cash now, it may the type of policy for you. But if you do not, then a regular term policy is probably the best one to go with.

The reason I wouldn’t necessarily suggest getting an ROP policy for a shorter term is that you can often make more money on your investment by paying for a regular term policy and then investing the difference.