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Return of premium term insurance deals with the ability to get your money back if you cancel mid-term. Most companies will give a pro-rata return.

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โˆ™ 2010-03-02 02:24:32
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Q: Before getting insurance what should I know about "return of premium term insurance"?
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What is return of premium?

Return of premium life insurance is a type of term life insurance policy that returns the premiums paid for coverage if the insured party survives the policy's term.


What is the average return of premium life insurance?

Return-of-premium life insurance is like an ordinary life insurance policy, but payments made on premiums are returned to the insured individual if the policy ends and they are still alive. Thus, return-of-premium life insurance policies do not punish one for outliving their life insurance. The average such policy might cost 25% to 50% more in premiums, compared to an ordinary life insurance policy.


What is the definition of insurance?

Insurance is defined as the compensation due to a loss, damage, death or illness. The compensation is in return for the payment of an insurance premium.


What does one receive if they survive the term of a return of premium life insurance policy?

If one survives the term of a return of premium life insurance policy, they are likely to get the sum assured and the interest or bonuses earned over the period. This can be viewed as a way to reduce risk and also invest.


What is an health premium?

Insurance is defined as the equitable transfer of risk from one party to another for a pre-determined fee. A premium is another name for this fee, which the policyholder pays to the insurance company in return for indemnity from healthcare costs.


What are the benefits of purchasing return of premium term life insurance?

The Benefits of purchasing return of Premium Term Life Insurance is that at the end of the coverage period that you selected, you can choose to get a lump sum payment on the base premium amount you have paid out. You can use the money as you choose, supplement your income at retirement, send your children to college, pay for personal expenses or for something else you would like.


Can you get money back for cancelling a life insurance policy?

If your life insurance policy has a cash value, you will receive that amount back minus any surrender fees. Term insurance does not normally have cash value, so you won't get anything back at cancellation. Some term insurance policies have a Return of Premium feature, that will return a portion of premiums paid back, if you cancel before age 65.


DO YOU GET interest on term life insurance?

Generally, term life insurance does not return interest on your premiums paid. Term life insurance is temporary life insurance for a specific number of years. Usually term life insurance is available for 1-30 years. Term life insurance does not build cash value within the policy. It is "Pure Protection" with no investment portion to the policy. There are Return Premium Term Life Insurance Policies which may return a portion of your premiums if you outlive your policy term.


What is ROP Insurance for, and do I need it?

ROP (Return of Premium) term Life Insurance means that the insurer agrees to repay your beneficiaries whatever premiums you've paid. That differs from other types in that there isn't a fixed benefit.


Will a insurance company pay for the damages done to your car by someone who stole it?

Insurance is supposed to return the car to the condition it was before it was stolen.


What are life insurance premiums?

A life insurance premium is the amount of money that is paid, on a periodic basis, to an insurance compasny in return for insurance coverage on a person's life. Provided that premiums are paid as and when due, the insurer is obligated to pay to the beneficiary(ies) the face amount of the policy. The amount of premium payable is determined primarily by the amount of life insurance purchased and the risk factors (age, medical history, etc) of the person to be insured under the policy.


What are insurance premiums?

A life insurance premium is the amount of money that is paid, on a periodic basis, to an insurance compasny in return for insurance coverage on a person's life. Provided that premiums are paid as and when due, the insurer is obligated to pay to the beneficiary(ies) the face amount of the policy. The amount of premium payable is determined primarily by the amount of life insurance purchased and the risk factors (age, medical history, etc) of the person to be insured under the policy.

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