Return of Premium Life
Life, Health and Variable Annuities Insurance Lines
Life Insurance comes in three flavors. Term insurance offers plain-vanilla protection at a low cost. Then there’s whole life, which has a savings component. A third type, the return of premium is essentially a hybrid of the first two. Each of these has pros and cons, and AIB will consult with you and educate you as to the insurance coverage that makes the most sense at every stage of your life.
Return of premium life insurance is a type of term life insurance policy. The concept is that the policy returns the premiums you have paid for coverage over that fixed term period if coverage is never used. For instance, a $1 million policy bought for $50000 over a 30 year period would result in the $50000 being refunded to the policyholder. As with all insurance plans, with a return-of-premium policy, a death benefit is paid out should you pass away. But if you live past, say, the 30-year term, you get all of your money back dollar for dollar. So no matter what happens to you — whether you die while covered or outlive the policy — money is distributed.