Return of Premium Term Life

Mortgage Life Insurance With Return of Premium

What is Mortgage Life Insurance? Mortgage Insurance or Mortgage Life is simply a term life policy that has been designed for homeowners. It is usually marketed to new homeowners, or those who have refinanced recently. By recently, it usually means within the last year or so, though some of these products can be purchase by those with older mortgages.

It is usually designed to have a term of years that closely matches the length of the mortgage, in increments of 10, 15, 20, or 30 years. The face value of the insurance policy will usually start at the amount of the loan, though most companies will allow a range of face values. For instance, if a spouse has income, a family may not need to the entire amount of the face value to protect itself. On the other hand, if the family has high expenses, they may desire a higher face value than just the amount of the mortgage.

No Medical Exam Life

Mortgage Life is often sold with a promise that the applicant will not need a medical exam. This sounds good, but health questions must still be answered on a detailed life insurance application. So it won't give health insurance to those with serious health conditions. However, for people with minor health issues, it may speed up the underwriting process. In fact, underwriting is often based on credit, and the fact that the applicant has just qualified for a new mortgage, eases that requirement, so some health requirements may be relaxed.

In any case, for busy people, this really speeds up the life insurance application process! It takes time for medical exam information to get returned to a life insurance policy, and for that information to get processed by a life insurance underwriter.

Return Of Premium or ROP

The Return of Premium Feature is called a rider. It will cost more than the base policy, but it provides an attractive benefit! If the insured person survives the policy, they will get the whole value of the premiums paid back. For a policy term that lasts decades, those monthly premiums can really add up! This is a great way to buy insurance, plus get back a nice check just in time for retirement!

Would you like to know how much a policy will cost you?

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Term Life Insurance which Returns Premiums!

How do you get your money back from a term life insurance policy if you don't die?

Return of Premium (ROP) Riders on Term Life
Most people understand how simple term life works. You buy a policy for a set amount of time. This time period (called the term) may be 1 year or 30 years. But after the policy ends, the contract is over. You are not covered any more, and your term life policy does not build a cash value.

What is there was a way to get your money back if you bought term life? Well, some top insurers offer a return of premium rider on term life policies. Return of Premium Term Life riders are an extra option with an extra cost. But if you survive your policy, which is what we all want to do, you will get a refund of every premium dollar paid. This includes the extra money you spent for the rider.

An Example of ROP at Work

This can be a very handy way to plan for the future. Let us say you spend $30 a month for a $100,000 30 year term policy when you are 32 years old. After 30 years, your contract ends. Now you are 62, and you have spent over $10,000 for coverage you do not have any longer.

But let us say that you chose to spend $35 a month to buy term with an ROP rider. Now you turn 62, and you get back a check for over $12,000! How does that sound?

Learn more about life insurance and get free quotes : Term vs Whole Life Insurance

Insurance Surfing - Top Consumer Tip Articles Today!

I don't know if you have seen Squidoo Lenses yet. They contain user generated content, called a lens. I did not expect to find some many insurance related articles in a place like that! Since it is almost the week-end, and I don't have a hot topic to post on right now, I'll direct you to some great insurance articles here.

ROP LIFE INSURANCE RIDERS = Return of Premium

Life Insurance Guide

Homeowners and Renters Insurance : Types and How To Buy

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ROP Life and Mortgage Life Insurance - What Is It????

Lots of people get approached about ROP or Return Of Premium Riders on their life insurance. This rider will refund your premiums if you survive the life insurance policy, which makes it sort of nice. If you die, your heirs get the face value of the policy. If you live (which is what we all want), you get your premiums back in one nice chunk. If you have a 20 or 30 year term policy, it may not seem like much when you write a check every month, but after decades pass, you can get tens of thousands of dollars back!

So how much can you get back? I'm glad you asked. I have a Return of Premium Life Insurance Calculator here.

I also have a neat little Life Insurance Guide Here!