“I thought if I bought a Term Life policy, only my beneficiaries would receive the benefits.”
What if you’d been paying into your life insurance policy for 20 years or more and suddenly became ill and unable to work? You’ve paid premiums into the thousands or even hundreds of thousands of dollars, and yet, you can’t pay your mortgage, car payments or your children’s tuition to school. Would it make sense to be able to withdraw a portion of the premiums you’ve paid into your life insurance? Return of Premium Term Life insurance guarantees that you are able to meet your financial needs, should you outlive the term of the policy. A Return of Premium term life policy is another way to protect your income and manage your family’s assets.
The important thing to note about Return of Premium term life policies is that the premiums stay level for the entire term of the policy. Then, should something happen that you need to use the money you’ve been investing in your life insurance before the end of the term, the funds are available. Unlike a standard term life policy, in which you don’t have access to the money you’ve invested for up to 30 years, you can use the Return of Premium policy as a planning tool for your family’s future.
The cost of a Return of Premium policy is slightly higher than a standard term policy, but the trade-off is in the peace of mind you have. It isn’t just for catastrophic illness, but should you outlive the term of the policy and want to pay off your mortgage, your child’s education, or even use part of the proceeds to retire early, you can. You do also have the peace of mind that if something should happen to you or a member of your family, you have the funds available to meet the financial obligations that come with catastrophic illness or disability.
Contact an AC Financial adviser at 800-564-3136 to add this income protection tool to your family’s toolbox.
