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Michigan return of premium term life insurance (ROP) is a new life product that combines the advantages of traditional Michigan term life with affordable, guaranteed level-premium periods (10, 20 or 30 years), and a return of payment feature. At the end of the level-premium period, 100% of the premiums paid will be returned to you!

How is this possible you may ask? Specific life insurance companies that offer this product calculate more for it than for non-return of payment term insurance. During the level-premium period, the insurance company is able to invest portions of the payment for company growth. As a result they are able to return your premiums to you at the end of the payment-premium period.

So for a Michigan consumer, what are the advantages of having a return of payment term life plan? Well for one, if you are healthy and outlive your term life period, then 100% of your premiums will be returned back to you. Second, in some cases rate of return on the additional premium approaches 5% to 6%.

While we have looked at the advantages of a Michigan return of payment life insurance policy, it is now time to look at the disadvantages. Obviously to start, the monthly payment structure will be higher. Sometimes 35%-50% higher if you want the return of premium. Second, how many people do you know who have kept their term life policy for the entire term? What would happen if you lapse your term life with return of premium rider? Well you might get a little bit of payment returned (depending on how long the policy has been in place), but it financially would not be worth it.

So you have to ask yourself, do I spend more money for the return of premium rider for my life policy, or just buy more life insurance? That choice falls completely onto the consumer.

Eventually it comes down to one choice for Michigan consumers. That is, do I want to spend the extra money to receive a lump sum check back when my term life period is over? Affordability should be considered as again premiums will be much higher. Consumers considering buying life insurance should always make sure they can afford it.

We at http://www.michiganhealthbroker.com offer all the available life insurance companies in the state of Michigan. We take our job very seriously, and sit with you to determine what kind of Michigan life insurance your need, what death benefit suits you. This takes a process of determining your debts and future costs that might be associated to you.

Randy Palmer has been a Michigan Life Insurance broker in the state of Michigan for over 5 years. We bring the best insurance companies for you to view and choose from. Rest assured you will be satisfied.

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Term life insurance has always been known as a ?pure insurance? because it is strictly paid upon death with no cash value if left unused. Term life insurance is relatively inexpensive for this very reason. You are paying for peace of mind and protection, knowing your family would be financially secure upon your untimely death. In the event that you are still alive at the end of your ?term,? any premiums paid over the years are basically gone. Ultimately, you paid for something you did not end up needing. Those who are unhappy with that notion typically end up buying other types of life insurance such as permanent life or whole life insurances. Unlike term life insurance , these two options are ?owned? and develop cash value over the years. You can even borrow against some of the policies if you have accrued enough credit.

The beauty of term life as opposed to permanent or whole life is of course the lower premiums. Cash value policy premiums are significantly more costly. Because many applicants were unhappy that they had to choose one or the other (no cash value versus something that offers some type of savings account), many insurance carriers developed a happy medium. This new offering is called Term Insurance with Return of Premium (ROP).

Benefits of Term Life with ROP

Term Life Insurance with Return of Premium (ROP) actually has more in common with forms of permanent life insurance than with true term life with a pure death benefit.

A Term life insurance with ROP policy offers partial or complete return of premiums in a lump sum if the insured is still alive at the end of the guaranteed level period, usually 15, 20 or 30 years. As with traditional term life, if the insured dies during the term, the death benefit is paid as with traditional term life insurance without a return of premium.

Term life with ROP works almost the exact same way as any other cash value policy. Premiums on this type of policy are much more costly because policy owners are refunded the premiums paid over the term if said policy owner is still alive. Like permanent life insurance, extra premiums are set aside in a savings account accumulating to an amount of money equal to the premium paid by the end of the term. While Term life with ROP serves as a type of savings account, keep in mind that the return is substantially less than other investment arenas such as stock potentials.

Aside from acting like permanent life insurance in terms of being a savings vehicle, some ROP products also allow loans on a percentage of accumulated premiums already paid. ROP policies are appealing to people who lead healthy lifestyles as they believe they will live past the term and receive the large refunded sum. Healthy owners of the ROP products plan to apply their lump sum amounts toward future expenses, such as college tuitions, weddings, opening a business, trips or a house down payment.

Check with your financial advisor if you think Term life insurance with Return of Premium might be the right choice for you. You may also obtain an online quote in minutes.

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