Return of Premium Feature From United of Omaha Life Insurance Company or Companion Life Insurance Company
With a term life insurance policy with a return of premium feature, you will receive term life insurance coverage. However, at the end of the designated period of your policy, you will receive the premium payments you have paid over the lifetime of the insurance policy.
Since you receive the premium payments back at the end of the policy (assuming that death benefits did not have to be paid out) this is a way to guarantee protection for your family at effectively a zero cost. At the end of the term, all the money paid in will be returned to you.
Benefits of the Return of Premium Feature
If you have the budget for a policy that includes a return of premium feature, this form of term life insurance may be an excellent choice. The premium payments returned at the end of the policy are a nice bonus accompanying the peace of mind in helping to protect your family's financial future.
The premium payments on term life insurance policy with a return of premium feature are also slightly higher than other term coverage. Typically, the premium payment will be higher than the payment on a term life policy without a return of premium feature. Like term life insurance policies, term life insurance policy with the return of premium feature has a limited coverage period. Like whole life insurance, the policy is designed to guarantee you receive something in return. Unlike whole life insurance, term life insurance policies do accrue cash value. The premium returned at the end of the period is simply equal to the payments that you have made.
Should I Get a Term Life Insurance Policy With a Return of Premium Feature?
Ultimately, the decision will be up to you and will depend on a variety of personal circumstances. To discuss your situation, you should speak with one of our agents who can examine your personal finances and goals for the future.
The term life insurance policy with a return of premium feature has increased premium relative to a term life insurance policy without a return of premium feature. While the premiums will eventually be returned, assuming you’re alive at the end of the coverage period, you are still required to make those payments until that point. Rather than stretching their finances, some choose to go with the term life insurance policy without a return of premium feature.
Unlike whole life insurance, these extra premium payments do not come with a cash value component. You will receive the premium amount back, but there will be no return on the investment beyond that.
Finding a Term Life Insurance Policy with a Return of Premium
Locate one of our local life insurance agents to begin researching your options when it comes to return of premium benefit features. They will walk you through the process and details of this term life insurance policy and help you determine if it's the right decision for your family. Locate an agent today.
- Return of Premium Feature
- Term vs. Whole Life