AccuQuote, a Leading Provider of Term Life Insurance Quotes, Provides Tips for Shopping for Return of Premium Term Life Insurance
Wheeling, IL (PRWEB) August 5, 2008 -- Return of premium term life insurance policies have become a popular choice for consumers over the past few years. The appeal? They offer the same peace of mind that comes with a traditional term life insurance policy, along with a money back guarantee from the life insurance company (http://www.accuquote.com/life-insurance-company-policies.cfm) if the insured outlives the policy. AccuQuote, a leader in providing term life insurance (http://www.accuquote.com) quotes to people across the United States, recommends these tips when comparing a return of premium policy to a traditional term life insurance plan.
1. Determine The Right Amount of Coverage Needed - Before deciding between return of premium and a traditional term life insurance policy, first determine how much coverage is needed. Getting the right amount is more important than getting the right kind of coverage.
2. Understand What Is Affordable - Return of premium is relatively inexpensive, although it costs a bit more than regular term life (http://www.accuquote.com/low-cost-life-insurance.cfm) insurance. On average, 30-year return of premium plans cost about 50% percent more than a regular 30-year term life policy. That difference can vary based on one's age and health. If the return of premium plan is affordable and fits within the family's budget, it might very well be a good deal.
3. Consider All Options - Before deciding what type of coverage to buy, it's important to consider the amount of coverage, length of term life policy and cost. One should make sure their family will be adequately protected for the right period of time. To do this, buy a term length that is long enough so that it won't expire before the need for the protection ends. In some cases, it makes more sense to purchase a traditional term life insurance policy with a larger face amount rather than spending the money to get the return of premium component.
"On average, return of premium products cost more than traditional term life insurance policies, but they offer a guaranteed return," says Byron Udell, founder and CEO of AccuQuote. "However, before you are lured by the appeal of a refund, you should first make sure you purchase an affordable life insurance (http://www.accuquote.com/affordable-term-life-insurance.cfm) policy that you won't let lapse in order to makes sure you don't leave your family unprotected," says Udell.
Some people ask, "What's the rate of return on the difference in premium?" Here's an example: A 35-year-old healthy male (non-smoker) will pay about $810 annually for a 30-year $500,000 return of premium term life insurance policy. However, if he outlives his policy, he'll get his entire $24,300 back. With a traditional term life insurance policy, he'll pay about $260 less per year, but to make $24,300 he would need to invest that difference and earn a 6.6 percent return (after income taxes!) for 30 years. In today's world of low interest rates a 6.6% after-tax return may look pretty good.
About AccuQuote
AccuQuote helps consumers find the best values in term life insurance by combining instant online life insurance quotes (http://www.accuquote.com/free-life-insurance-quote.cfm) with the personal service of unbiased life insurance professionals that can help answer questions, identify important issues, and make meaningful recommendations. The company offers consumers an extensive selection of life insurance options, including term life, whole life, and universal life, as well as selected annuities. The website has many handy insurance tools, including a life insurance needs calculator (http://www.accuquote.com/term-life-insurance-calculator.cfm) to help you figure out how much to buy, a glossary that explains industry terminology, a collection of articles that cover the basics about life insurance, and a blog which answer many questions about life insurance. For additional information or to get quotes for cheap term life insurance (http://www.accuquote.com/cheap-term-life-insurance.cfm), please call 1-888-314-4455.
###
Related Articles:
An Overview on Fleet Insurance
For people who own businesses or for people who like keeping a number of vehicles, fleet insurance is an option that must be considered If you have four vehicles or more (for business or personal use) you can opt for fleet insurance
A Life Insurance Comparison: Whole Life Insurance Versus Term Life Insurance
What type of life insurance might fulfill your assurance needs This article is a life insurance comparison about whole life insurance versus term life insurance
Understanding the Importance of Critical Illness Insurance Coverage
A critical illness insurance coverage is a form of financial protection or guarantee in case you develop a critical illness. A critical illness insurance coverage, if offered through standard policy, can be very expensive because of the critical nature of the illness. However, there is always a critical insurance quotes service on the Internet which could help you find the suitable plan and coverage for you and for your loved ones.
The Boom in the Green Car Insurance Market
Recent research has found that Green Car Insurance policies cost almost 100 per cent more than the regular insurance covers Price comparison websites on the Internet warn drivers who want to go green that clearing of their carbon emissions is going to cost them more
Kwik-Fit Insurance First UK Car Insurance Company Offer Motor Insurance e-certificates
Online Car Insurer agrees deal with solutions company SSP to deliver fast online certificates for web users.
Motorbike Insurance Needed By Riders
Motorbike insurance provides need protection to expensive bikes or bike riders. Although some of the coverage and costs of motorbike insurance are similar to other auto plans, there are also some unique differences that affect the benefits and costs of motorbike insurance.
Premium Industrial Insurance
Over the decades, well meaning but often misinformed persons have decried what they have called "the high cost of weekly premium industrial insuranceý Any offhand comparison with the cost of ordinary insurance or cheap homeowner insurance (http://cheap-insurance-rates
Affordable Car Insurance IS Within Your Reach
If you drive a car, you need affordable car insurance. It really is as simple as that, and it is more than likely available for you. Before you think you can get by without it, think of the repercussions in being judged as the person responsible for an accident with a Mercedes, a Lexus, and your 1998 Ford Windstar. If you simply have the cheapest coverage your insurer offers, you might find that it's not nearly enough to cover the cost of such an accident. The best way to prevent potential financial devastation is to be constantly aware of car insurance rates, potential discounts, and proactive ways that you can keep your rates as low as possible.
Whole Life Insurance | Whole Life Insurance Is Superior Then Other Life Insurance Policies
In most cases where people do not take up a life insurance and if you ask them the reason for not taking up the life insurance, you will come to know that people feel that investing money in life insurance is a dead investment and waste of money But that is not the case if you study and do a research, you will find that people generally get more then what they have invested
Business Insurance Now Teams Up With Philadelphia Insurance to Offer Colorado Insurance Brokers Coverage
As one of the most knowledgeable and extensive providers of small business insurance on the Internet, Business Insurance Now has currently teamed up with Philadelphia Insurance in order to provide coverage for all individual Colorado insurance brokers.