Premium Life Insurance Evaluation

One important way to evaluate any life insurance policy is to be honest with yourself about what you're getting if you buy. If you want peace of mind above all else then return a premium life policy is a good buy. If you also want to make a good financial investment, one that gives you the highest possible return on your money, then you need to look at a range of financial products as well as this one.
A return of premium life policy is term life insurance as opposed to whole life insurance which covers the whole life of the policy owner. It is purchased for a specific term the usual being 10, 20 or 30 year terms. During the term of the policy if the owner of the policy dies, his or her heirs get a death benefit. At the conclusion of the term but at no point before then, the owner also gets back the exact value of the premiums he or she has paid.
With a normal term life policy if the policy lapses due to failure to pay premiums, the owner gets nothing. At the end of the term of the policy, if the policy owner is alive he or she also gets nothing. It is only with a return of premium life insurance policy that the owner retrieves the money he has put into buying the peace of mind an insurance policy brings.
The big advantages of return of premium life insurance.
There are definite advantages to buying a return of premium life policy. It is cheaper than whole life insurance and you will get a good competitive price if you shop around. And because it is a term life policy as opposed to a whole life policy you can buy it to make sure you are covered during particularly vulnerable periods of your life, such as when your children are young or while you are paying back a mortgage. In other words it's a flexible insurance product you can adjust to meet your needs at different times in your life.
Since a return of premium life policy is term life insurance it also has the specific advantage of this type of insurance. With this type of policy, if you become ill with a debilitating or terminal illness, premiums do not increase. In addition the insurer cannot cancel the policy and if you wish to renew the policy for a further term, the insurer will do that without a medical examination, though the premiums may increase.
The disadvantage of having this type of insurance.
A return of premium life policy definitely gives you peace of mind by knowing your heirs are covered in the event of your death during specific periods of your life. What it does not give you is a good return on the money you pay in premiums. If the term of your policy is 20 years you will get back all the premiums you have paid over that time but the value will have been eroded by inflation.
If you want your life policy to be an investment as well as providing peace of mind then return of premium life insurance is not for you. You will get your money back but its value will have decreased. It's the insurer who benefits by pocketing the interest and dividends from your money.
If you buy a term life policy and then invest the difference between the premiums for a simple term life policy and a return of premium policy you may get more money at the end of the term of the policy. Of course to get your good financial return you need to invest well and share markets can be volatile. And many people forget to factor in the advantageous tax benefits that are part of all life insurance. The way to go is to get a good competitive quote for return of premium life insurance and then work out costs and benefits to you of buying this type of policy versus another kind of financial investment.
For Which Life Insurance, information that's clear and useful and for FREE QUOTES on all Life Insurance, click here www.bestlifeinsuranceavailable.com
If you have a big need for straightforward, non technical descriptions of different types of Life Insurance before getting a quote, I've collected all the information you need.. Here's what I found out about Return Of Premium Life Insurance Lorraine Benham
Article Source:http://EzineArticles.com/?expert

View the Original article