Term Life Insurance

Term life insurance provides coverage for a specific period of time, usually from one to 30 years. Term policies provide a death benefit only if the insured dies during the term. This can be at a guaranteed rate or in some cases a guaranteed rate for a period of time and then a projected rate. For example: 30 year level term would guarantee a level premium for 30 years based on a specified death benefit. Term life insurance is usually the least expensive form of life coverage, at least initially. After the initial term period of years, 5,10,15, 20, 30 etc. the policy could terminate or it can renew at a higher premium. If you are allowed to renew it at a higher premium (based on your then attained age), it is called renewable term life insurance.

Return of Premium (ROP) Life Insurance

Also known as return of premium term life insurance, this is term life insurance for a period of time where one receives a guaranteed return of premiums paid if you keep the policy for the term period. For example, David Sharpe of Los Angeles is forking out $11,240 a year in premiums for term life insurance, but he isn’t concerned about the payments. He’s counting on getting all of them back after the policy expires in 30 years, assuming he’s still alive–a total of $337,200, currently tax free (conult a tax adviser for further details and individual applicability).

Sansevieri Insurance Services can assist you with the process – call us for more information!  Serving Laguna Beach and all of California.  Call us  today at (949) 722-6078