Life INSURANCE ~ Returns my premiums?
This is no scam ~ Landmark offers a policy written by Cincinnati Life Insurance Co. that pays back 100% of the premiums you pay at the end of your policy period tax free!
A Tale of 2 policies
Term Life vs. Term Life Return of Premium
John 28 year old male, non-smoker, in good health, and living in Iowa. He is married and just purchased his first home for $80,000. To help protect his new wife from having to repay the mortgage on her own should he pass away. John decides to write a term life policy for $100,000 worth of coverage for 30 years.
SCENARIO 1: Regular Term Life:
John pays a monthly premium $14.43. Over the course of 30 years John has 2 children and moves to a new house. By age 58 his policy period has come to an end. He has paid $5,194.80 in premiums over the life of the policy. The good news is John is still alive and did not need to use his policy. The bad news is John gets $0 and now he needs to purchase a new larger policy that costs much more at his present age. If John has developed any ongoing health issues it may even be impossible to obtain coverage at this time.
SCENARIO 2: CINCINNATI Life’s TERM LIFE return of premium:
John listens to his insurance agent’s advice and decides to take out the special return of premium policy. He realizes he may be paying a bit more monthly up front. John pays $24.64 per month. Over the course of 30 years John has 2 children and moves to a new house. By age 58 his policy period has come to an end. He has paid $8,870.40 in premiums over the life of his policy. John may chose to take the policy value, $8,870.40 tax free, or a paid-up life insurance policy in the amount of $24,300. John’s wife is ecstatic at the news!! She is so happy her husband survived those 30 years, now it is time to renovate the kitchen. 😆