Most term life insurance policies are considered "rental" life insurance; because when the "term" ends the money spent magically disappears into the life insurance company's hands. While this provides a benefit for some folks, there is an obvious downside of losing all of your money when you're still alive at the end of the term(which of course is your goal)!
Now, there is a new program that gives the spent money back at the end of the period and it's called Return of Premium Term Life Insurance(or Cash Back Option). With it you have the benefit of your beneficiaries getting paid if you die, but you're also betting on yourself to live. Here's how it works.
This program normally comes with a 20 and 30 year term period. In English, this means that coverage exists for either 20 or 30 years. If a person dies in that period, the death benefit is paid out to the beneficiary(just like good ol' regular term). However, if you live through the period, like most of us statistically will, once the term is over you will receive every single penny that you've paid into the policy tax-free!
Term life insurance with cash back option is perfect for those with young kids or a mortgage. Because term is mostly used to cover a mortgage or the expense of raising a child, setting up a 20 year term when your child is born or a 30 year term when you purchase a home or refinance your mortgage is the perfect way to protect your family. Then, at the end of the term you have a nice savings account built up.
At Integrated Financial Strategists we absolutely love Return of Premium Term Life Insurance. Philadelphia, Montgomery County and Bucks County are convenient to our office, and we would be glad to either speak with you over the phone or meet you at your house to show you how powerful this program is.
Please click the link for more info or to get a Term Life Insurance with Cash Back Option Quote.