Return of Premium acts like a savings account for retirement.
What if you could tailor your insurance policy so that at the end of a certain period of time you could get a refund of your premiums paid, tax free? Not just with certain life insurance policies, but with other policies, you can purchase Return of Premium Riders that allow you to take a refund of some or all of your premiums paid.
What is the purpose of a Return of Premium Rider, and why would anyone want to surrender a policy after purchasing it? Several reasons. With a term life policy, many times people purchase a ROP Rider because they are young and healthy when they purchase the policy that they assume they’ll outlive the term. A ROP Rider is like a tax free savings account that pays you back all of the premiums you paid into the term policy, so you can either purchase a new policy, or use the funds for something else.
With a term life policy the Return of Premium Rider acts like a savings account of sorts. You pay a slightly higher premium, so that the funds can be invested over the life of the term. In the end, you are refunded the exact amount you paid in premiums. The benefit to you is that you receive a low cost term life policy and all the benefits of life insurance for 10, 20 or 30 years, and in the end, are refunded all you paid tax free.
AC Financial Group offers Return of Premium Riders not only on its term life products, but on critical illness health insurance, disability insurance, income protection, and long term care products among others. The way those benefits are administered varies by product, and can be thoroughly explained by an AC Financial Adviser.
Whether you are looking for a way to invest in a living benefit, add cash value to your portfolio to supplement your retirement income, or help meet other financial goals, call an AC Financial Adviser at (800) 574-3136 to talk about adding a Return of Premium Rider to your policy.
