Term Life Insurance vs. Return of Premium Term Life Insurance
Recent case study
This week, we will be summarizing a recent client experience and their journey on deciding which life insurance policy best suited their needs. This person is 36 years old, married, and wants to make sure their spouse has money left for them should an unexpected death occur. Here is what this client had to say in their Facebook review they left on Pacific Insurance Group’s page:
“Heard about Pacific Insurance Group on the radio and checked their website. User friendly and self-explanatory I was able to educate myself and narrow down my options. I still had some questions about some of the insurances and I scheduled 1:1 with Carter. I was able to book an appointment 2 days out which was pretty cool. He was able to confirm my findings and also provide some more insights and options. I am pleased with the honest and prompt service. Great place HIGHLY recommend.”
This client knew very little about life insurance before visiting www.pacificinsurancegroup.com, but it didn’t take them long to get educated and start running different scenarios of term lengths and death benefit amounts. When this client came into my office, they were fairly confident that they wanted a 30-year term with a one million death benefit, but they also wanted to know more about Return of Premium Life insurance as well. We looked at the lowest cost companies on the quoting system, which was $77.74, and then had a discussion about the additional riders built into the term policies. One life insurance company, which happened to be about $5 more per month, had accelerated living benefits for terminal, chronic, & critical illness and the 1 million 30-year quote was $83.31 per month, with the premium guaranteed for thirty years. This product also has a premium credit if the client ever wants to convert to a cash value product that will last until age 120.
The other product we looked at was a 30-year return of premium term with no accelerated benefits. The monthly premium was $163.17 and at the end of the 30-year term period, this insurance company would return back the premiums of $58,741 (if the client is still living). The client was unsure of how they wanted to proceed, so we scheduled the paramedical exam for both companies and the client was approved at the best health rating equally.
At the end of the day, this client was more interested in the pure protection and really liked the benefits they could accelerate in the event of a terminal, chronic, or critical illness while they are still alive (during the 30-year term period). However, about half the time people like the idea of the return of premium feature and knowing it is 100% guaranteed.
It is great to spend time getting educated when it comes to purchasing life insurance; but meeting with an experienced life agent who has the experience to go a little deeper is extremely prudent when it comes to taking out a policy. If you are in the market for life insurance please visit www.pacificinsurancegroup.comfor more information and whenever you are ready to have a deeper conversation, someone on the Pacific Insurance Group team would be more than happy to speak with you. Our home office is located in Bellevue, WA, but we are contracted in almost every state in the United States. Schedule an appointment with us online or call our office directly at 425-246-1676 to speak with a life insurance expert.