The Term Life Insurance Premium You Pay Earns More

2007-03-08 10:33:40

( Insurance )



A term life insurance premium is the agreed price for assuming and carrying the risk – the consideration that is paid to a life insurance company for undertaking you against death within a certain period. As a general principle in life insurance business, the time specified for the payment of premiums is the essence of the insurance contract. In fact, insurance premiums are the lifeblood of an insurance company. Without the premiums, no insurance company will survive in the business.

You must have been informed by some of your friends who are term life policy holders that if you decide to surrender your term life policy, you cannot recover the term life insurance premium you paid. Of course, you don’t want to throw away your hard-earned money just like that. You would like to get the right value out of every single dollar you spend for your term life insurance premium.

One of the latest innovations in term life insurance business is the return of premium term life insurance. It is so ingenious that if you purchase this product and you outlive the term policy, all the premiums you paid are given back to you, tax-free.

Unlike the traditional term life insurance, in return of premium life insurance you will get some of your money back even if you surrender your policy. You may spend more money with return of premium term life insurance than your usual term life insurance premium but it will never be wasted. If you die within the period when your term policy is effective, your beneficiary will still get the face value of the policy. And not only that, as its name implies, it returns the total term life insurance premium you paid if you stay alive at the end of the term period.

Now, if you are worth millions of dollars and you want to keep your money to invest in another business, you may avail of the life insurance premium financing. You don’t have to spend a single dollar under this scheme. A bank will lend you the money to pay your term life insurance premium and the bank will get paid from the death benefit of your term life insurance. What remains after paying the bank goes to your beneficiary. You will be acquiring your term life policy without putting up cash.

Many life insurance products that best suit your insurance needs are now available in the market. Gone are the days when it will only be your beneficiary who will enjoy the benefits of the term life insurance that you bought. The money that you pay now for your term life insurance premium will actually earn more in the future!


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