Term-life doesn’t offer the investment features of other types of life insurance, but under a return-of-premium (ROP) policy you’re able to invest in something unique.Read More
A “dividend” on a life insurance policy is unlike the dividend you receive on a share of stock or a stock mutual fund. For tax purposes, dividends are considered a return of a portion of the premiums paid for the policy. They are recommended for only permanent policies rather than term policies.Read More
The most straightforward type of life insurance is term life. If the policyholder dies within the term, the death benefit is paid to the beneficiary of the policy. This type of policy doesn’t have the bells and whistles of a whole life policy, but can be obtained at a low-cost for those who need basic protection.Read More
If you’re seeking term life insurance and you would like to get some of the money you paid into the policy back, you might want to consider return of premium life insurance.
Term policies require the policyholder to pay regular premiums to keep the policy in force for a designated amount of time, usually 15, 20 or 30 years. If the policyholder dies during the term, their beneficiaries receive the death benefit. Although term insurance is the most straightforward of all insurance plans, if the policyholder doesn’t die and the policy expires, the policyholder would have to renew the policy for another set number of years to be covered, usually at a much higher rate.Read More
As with everything in life, there are two sides to every story.
Edward E. Graves, author of “McGill’s Life Insurance” says that while some argue that term life insurance is great for those who need temporary coverage or have a lack of funds to buy permanent insurance, others are quick to point out its faults.
One of its great strengths in being temporary can also be its weakness.Read More
Commonly associated with permanent policies; dividends are declared when an insurance company receives the premium payment from a policy owner, invests the money, and then returns a portion of the money back to the policyholder. After a policy is purchased, policy owners are given the opportunity to decide how dividends will be rewarded, which can be done through a series of options.Read More