Joint Life And Survivor Insurance
Joint Life and Survivor Insurance provides coverage for two or more persons with the death benefit payable at the death of the last of the insureds. Premiums are significantly lower under joint life and survivor insurance than for policies that insure only one person, since the probability of having to pay a death claim is lower.
Get Your Return Of Premium Quotes
Dont buy new life insurance without getting quotes. Companies offer different terms, premiums, and interest rates on such policies.
If youre looking for the best policy, start here and get your free quote. With just a little information, we can secure the best quotes for a return of premium policy so you can see if its right for you.
Cons Of Rop Life Insurance
- Average Health If you are in average health, the additional cost is often prohibitive for the ROP rider.
- Middle-Aged People Term insurance with a return of premium features is not suited for middle-aged people.
- Return on Investment Clients with available tax-deferred accounts and familiar with investing should probably consider a basic term policy without the rider.
- Life Expectancy People who are not confident they will outlive the initial term since an ROP policy doesnt return premiums upon death.
- Experienced Investor The premiums returned are tax-free the ROP premium riders additional cost could earn more if invested in the market.
Surrender Value If an ROP term life policy is surrendered early, it may be possible to get some premiums back. Still, many companies offer no premium return when a policy is surrendered within the first few years.
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Average Cost Of Return Of Premium Life Insurance
If you opt for a return of premium life insurance policy, you can expect it to pay more than you would for a traditional term life insuranceup to 30% moreas the insurer wishes to recoup the costs of your premium refund.
The selected term, your age, whether you smoke, your health, and the individual insurer all play a role in the cost of your ROP policy. State Farm, for example, charges $49.59 monthly or $570 annually for $250,000 worth of coverage over 20 years. However, thats only if youre in excellent health and are a 25-year-old femaleyour rates could be vastly higher depending on your age and health condition.
If youre not good at saving money, a return of premium life insurance policy can help you do so. Instead of spending the cash or allocating it toward riskier stocks or other investments, youll receive a guaranteed amount back as long as you maintain your side of the agreement and outlive the policy.
Life Insurance Policies With Return Of Premium
Below are some examples of term life insurance policies with a return of premium option:
- AAA Life Insurance: Available in 15-, 20- or 30-year terms, with $100,000 and up in coverage.
- Cincinnati Life: The Termsetter ROP policy is available for level term periods of 20, 25 or 30 years. Minimum face amounts start at $25,000, depending on your health classification.
- Country Financial: Available as a rider on 20- and 30-year term life insurance policies.
- Illinois Mutual: Coverage ranges from $50,000 to $500,000, and terms can be 20 years, 30 years or to age 65.
- Lincoln Financial: Available on TermAccel and LifeElements in 10-, 15-, 20- and 30-year terms.
- Mutual of Omaha: Available on Term Life Express in 10-, 15-, 20- and 30-year terms.
- Pacific Life: Available on PL Promise Term in 10-, 15-, 20- and 30-year terms and Pacific Elite Term in 10-, 20- and 30-year terms.
- Protective: Available on Protective Classic Choice Term policies in term periods from 10 to 40 years.
- State Farm: Coverage amount starts at $100,000 and is available in 20- or 30-year terms.
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About Senior Life Insurance Company
Senior Life Insurance Company was founded in 1970 by Ron Powell and Dale Powel. The company offers life insurance products in 40 states and the District of Columbia. It is headquartered in Thomasville, Georgia.
Senior Life Insurance has licensed agents who work in the field. However, the company specializes mostly in selling burial insurance over the phone through TV commercials run on multiple networks.
Senior Life offers a range of whole life and term life insurance plans, also marketed as final expense insurance policies, for seniors up to the age of 85.
These policies are designed to help ease the financial burden of the family after the death of the insured.
Final expense policies allow paying for final expenses such as burial, legal costs, medical bills, and any outstanding debts.
Why Should You Choose A Term Plan With Return Of Premium Option
Given the increasing cost of living and responsibilities in life, each one of us is looking for ways to manage money efficiently. The financial instruments that offer an opportunity to build wealth and get life security can be an excellent choice to achieve that.
Term plan with return of premium option also provides additional benefits such as waiver of premium, accidental death benefit, disability benefit, and protection against critical illnesses. Investing in TROP can bring a sense of overall protection for policyholders.
A policy buyer may find it difficult to choose between the several insurance products available. Choosing on the basis of one deciding factor, whether it is cost or policy period may not be favourable. Hence, make sure to consider the comprehensive benefits of a term plan with return of premium to be satisfied with the investment.
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How Does It Work
In a typical term life insurance policy, you dont receive your premiums back if you outlive the term. The policy expires, and you dont have life insurance or the money you paid.
With a return of premium policy, you earn most of the principal back if you outlive the policy. Of course, theres a chance you wont outlive the policy, which means youll pay higher premiums for no reason, but thats a chance you take.
What Is Return Of Premium Term
A ROP term life insurance policy provides a death benefit in the event that you pass away, but also offers a refund on paid premiums if you outlive the term of your policy. Because of this added benefit, ROP life insurance can cost more than a regular term life insurance policy.
A standard term life insurance policy lasts for a set period of timeusually between 10 and 30 years. But ROP policies tend to have fewer term options available, such as only a 20- or 30-year term period. If you pass away during that time, your beneficiaries will receive a death benefit, but if you outlive that period, neither you nor your heirs get anything.
Its possible to have a cash value component with a ROP policy that makes it possible to borrow against the policy while its still intact. When you do this, the loan amount will be deducted from your refund if you outlive the policy.
Usually, you purchase a ROP policy as a rider or optional benefit in addition to a standard term life insurance policy. In some cases it is possible to buy a standalone ROP policy, but this is not as common.
There are some downsides worth watching out forif you terminate your policy early, you likely wont get your premiums back.
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How To Choose The Best Rop Life Insurance
To determine which ROP life insurance policy is the best deal for you, youll want to compare the monthly cost increase for getting an ROP rider on policies that carry the same amount of coverage. You also should weigh each policys total return by looking at the cost of the ROP option versus the guaranteed refund amount.
For each plan youre considering, conduct an opportunity cost analysis. Add up the amount you would pay in premiums and the guaranteed amount you would get back if you outlived the policy. Then estimate the results of alternative scenarios in which you would put that money in other savings or investment accounts.
With any term life insurance policy, there is always at least some chance that your coverage will end before you die, leaving you with nothing to show for all the premiums you pay over those decades. And unless you put more money into a new policy, your loved ones will get no financial benefit when you finally do pass on. A term life policy with an ROP rider is one way to ensure that you get something in return for the cost of that unused life insurance besides peace of mind.
Buying ROP life insurance is one of several ways to obtain a cash benefit from a life insurance policy. You may also be eligible to receive a lump cash sum by selling your life insurance policy through a life settlement. To learn more about this process and receive a FREE cash estimate on the value of your policy, contact Harbor Life Settlements today.
Living Past A Policy’s Maturity Date
Permanent life insurance policies typically come with a maturity date, at which point the policy will either be considered “paid-up” or you would receive its entire cash value as a payout. Whole life insurance policies, for example, typically mature when you reach the age of 100. Universal life insurance policies that are currently available often come with the option for the policy to mature at age 100, 105 or as high as age 121.
However, if you have an older permanent policy, it might mature when you reach a lower age, such as 85. While this isn’t a direct return of premiums, you would receive money back that you had paid into the policy’s cash value.
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Choosing The Best Term Policy With Return Of Premium
Generally, more prominent insurance companies offer you ROP plans. Since the companies offer you different features in their insurance plan, so itâs best to compare several policies to find the right option. You need to understand the instanceâs structure, such as whether you will get an interest or not.
Apart from this, you also need to look at different policies to determine which one offers you the cheapest incremental cost of the policy. If you want to know the return on the ROP policy, you need to compare the cost of ROP to the total premiums returned.
The lower the incremental cost will be, the greater the return on investment an insurer will get if they outlive the policy. You also need to know ROP companies offer different quotes for the return of premium riders and base policies.
So, itâs best to compare the quotes before making any decision. The ideal insurance plan may not be as good for you if it works well for other people. Since every persons financial condition is different, you need to consider a plan according to your financial stability.
Lastly, when you are making up your mind, do remember that ROP is a tax-free investment, while the return on money invested in a brokerage account will follow the tax obligations.
How Does The Return Of Premium Rider Work
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Our Methodology: How We Review Life Insurance Carriers
We designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank more than 90 insurers across five general categories: financial stability, customer satisfaction, product and feature variety, the overall buying experience, and cost.
In order to do this, we collected over 5,000 data points and scored each company based on 55 metrics. We grouped metrics by category to see how insurers performed in each we then weighted category scores to determine how companies performed overall.
Reasons You Might Want Rop Life Insurance
Low risk toleranceIf you have a high aversion to financial risk, then an ROP policy might be a reasonable option to consider. Perhaps the prospect of putting thousands of dollars into a life insurance policy that never pays out because youre still around when the policy expires doesnt sit well with you. You might also worry that the money you spend on life insurance will leave you with fewer funds available for things like retirement savings and medical needs if you outlive your policys term. With a return of premium policy, you can recoup at least some of that money if the policy expires before you do, whereas with traditional term life insurance, you get nothing back.
Longevity in your genesAnother incentive for purchasing ROP life insurance might be if you have a better than average chance of living longer than the 20 or 30 years of your policys term. Maybe youre in better physical shape than most people in your age bracket and geographic location, or you have several centenarians in your family tree. In that case, you might be concerned that the blessing of longevity could backfire unless you have a backup plan for your insurance policy.
An ideal candidate for ROP insurance might be someone with low risk tolerance, a high risk of outliving their term policy and a high enough income to absorb the extra premium cost without sacrificing other financial needs.
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Pros And Cons Of Return Of Premium
There are several pros and cons to consider when it comes to return of premium life insurance. The reason you should analyze these pros and cons is that they can help you to make your decision. By seeing the pros and cons, you can understand how a return of premium policy works. Then, you can figure out how it would work for you as well.
Do You Get Money Back On Premium Return Term Life Insurance
Return of premium term life insurance typically provides coverage for a term of 15, 20, 25, or 30 years. If you dont die before your policys term ends, the insurance company pays you back in full for the amount youve paid on your premiums.
State Farm return of premium life insurance lays out some of their specific details on their website.
Return of premium insurance may even be available from other insurance providers that offer a variety of insurance types.
For example, AAA return of premium life insurance is a policy that many didnt know was available. Still confused about what return of premium is? Get familiar with life insurance terms to stay on track.
Your life insurance quotes are always free.
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Best For Corporate Responsibility: Assurity
- AM Best Rating:AM Best is a credit rating agency that assigns insurance companies a letter grade from A++ to D. A companys grade indicates its ability to pay its claims and honor its financial obligations.A-
- Accepts Credit Cards:Yes
Can apply without a medical exam
No online application
Unimpressive financial strength
Assurity has a lot of good traits, but we especially like that it takes corporate responsibility to the next level. Assurity is a certified B corporation, which means the company meets high standards of accountability and transparency, and it’s committed to social equity and the environment. It also receives fewer complaints than expected for a company its size. Plus, you can add a range of riders to your coverage, including a disability waiver of premium and a critical illness benefit.
The conversion period for ROP and other term policies lasts until just two years shy of the policys level term period . For example, if you purchase a 30-year policy, you can convert it to permanent coverage until year 28. Thats not as good as the options provided by Mutual of Omaha and AAA, but its still good.
Like our other top companies, Assurity lets you apply for coverage without a medical exam, but you cant do it without the help of an agent. The company receives an A- financial strength rating from AM Best, which, while solid, is still the poorest of all best ROP companies in this list.
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Senior Life says that, unlike other life insurance companies, it promises to give you all your money back if you outlive your term, not just a percentage. You are encouraged to call for more information.
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- Once verified, the information you provide will be displayed on our site.
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What Is Term Life Insurance
A term life policy is purchased to last for a specified period, such as 1, 5, 10, or sometimes as much as 30 years. Coverage expires when that period endshence the nameand therefore, a payout only happens if the insured’s death occurs during the specified period. If the insured person outlives the original policy period, coverage renewal may be an option, but the premiums may be higher.