Term Life Insurance Review - ROP Life Insurance
Best Term Life Insurance?
A lot of people search for the ideal life insurance policy. I cannot tell you which type to choose, but you can read this article: Best Types Of Life Insurance - so you understand the difference between the types. But if you are looking for term life, I can argue the benefits of one particular feature that can convinces many people this is the best term life insurance policy.
Return of Premium (ROP) Life Insurance Advantages
When you buy term life, you take out a contract with a set beginning and end. So even though your policy may last 10, 20, of 30 years, it still has an end. If you survive your policy, and of course we all want you too survive it, you will have paid all that money and end up with an expired contract. But many insurers allow you to add an option (rider) that will refund all of your premiums at the end of the contract.
Of course, ROP riders will add to your monthly premium, but the extra expense is not budget breaking for most people. Let’s take a mythical man who would pay $32 a month for a $200,000 30 term life policy. With the ROP rider added, the premium may cost $36 a month. If the insured man passed away during the 30 years, and if he kept his policy in force, his beneficiaries would collect that entire death benefit.
You Get Your Money Back If You Live!
If he survived his policy, he would be entitled to get a check from his insurer for the entire amount of premiums he paid. That would be close to $13,000! The cash that can be collected at the end of the policy is an attractive incentive to go ahead and sign up for coverage, and it is also an incentive to keep the policy in force!
Potential Disadvantage of an ROP Policy
Some financial advisors will talk you out of this strategy. They will insist that if you invested the extra $4 a month or $1440, over the 30 year life of the policy, your return would actually be greater. The problem with this way of thinking is that people do not always get around to saving the money they should. Having to pay an extra $4 a month in a life insurance bill is not a big deal, but putting that money aside instead of blowing it at an expensive coffee shop is.
Related: Best Mortgage Protection
Health Insurance Review
The Best Medical Plan For You!
I sure hope you did not visit us with the thought we had a crystal ball. I have to tell you that your own budget, health needs, and even the place you live and work will affect your choice of health insurance. What I do want to do is hit the high points of popular medical plans so you can make an informed decision. Then you can see what health plans are available in your own local area, how much they cost, and if they will satisfy your own health needs.
Many people really do not undersand health insurance at all, and they should start here: PPO or HSA or HMO - Health Plan Advantages.
Here are some very quick guidelines to the advantages of various popular health plans:
- PPO - provides flexibility while controlling costs.
- HMO - simple to use, and provides a high level of coverage, but is the least flexible.
- HSA - good for people who are disciplined savers and like to manage their health choices and costs to a great degree.
- Mini-Med or Specified Benefit Plans - lower premiums and usually, easier underwriting, but may not provide a very high level of coverage.
These guidelines are very general, and are not intended to replace the advice of a local insurer who will be familiar with specific health plans in your area.
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