Return of Premium for permanent life is a real thing and if you so choose, you might have the opportunity (after 25 years) to get all your money back. But, before you start dialing your insurance agent, get clear on the facts. This refund option is, in essence, a financial incentive… an ethical bribe of sorts, to cancel your policy.
You might be wondering how and why would the insurance carriers do such a thing? Well, first understand that in a life insurance transaction, there is always a winner, and there’s always a loser. Consider this, you request your return of premium versus letting your family have the entire payout when you die. Who wins?
Take a listen to Byron as he explains the winners, losers and the return of premium for permanent life option.
Great information! Now, confirm you’ve got enough coverage using our nifty calculator below. If you do then give yourself a huge pat on the back. If you don’t have enough, call 877-794-9817 today!
Nifty Life Insurance Calculator
Our Life Insurance Calculator can help you get a rough idea of how much coverage you’ll need to make sure your family is okay financially when you die.
Annual income before tax: $
Annual income is an important factor in determining your needs, but it’s not the only one. When you die, your life insurance is like your final paycheck.% of income needed by dependents: %
Because you’ll be gone, presumably they won’t need as much as you’re currently earning. Typically, 80% of your current income is a good place to start.Your Age: years
The younger you are, the more years of your income your family stands to lose when you die.Number of years benefits are needed:
If you died tomorrow, how many years of income do you want to provide for your family?Annual inflation rate (estimate): %
Because of inflation, in order to maintain your family’s current standard of living, you’ll need to plan for increases in their annual income to keep pace. Historically, inflation has averaged between 2% and 4%.Annual interest rate (estimate): %
This is an assumption as to how much you believe your spouse will be able to earn on the death benefit proceeds. We have found that most surviving spouses are usually very conservative in how they invest the death benefit. The most common thing we see is that the money gets deposited into a bank account. You know your spouse better than anyone. Pick a number that you feel your spouse will be able to comfortably earn on the proceeds.
Now call us at 877-794-9817 and speak to a real person! (yes, we’re old school.) You have enough things to think about, so we’ve taken the stress out of shopping for life insurance.
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