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20 year Term Life Insurance or Return on Premium Policy?

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  • 20 year Term Life Insurance or Return on Premium Policy?

    We are taking Fire Your Financial Advisor, and assessing current policies we hold and their definitions. Stay at home parent, currently has a $100k Term Life Insurance policy, I called to inquire about changing to $500k-knowing that this will be a new policy. The Insurance agent mentioned a "Return on Premium Policy" where at the end of the 20 years I get a cash surrender (~$54k), but the premium is 4x. Can you help me debunk this policy? Feels like it's a Investment Insurance policy is that correct?

  • #2
    Just get regular term.

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    • #3
      I would not do the return of premium, today the internal rate of return in that product is so low thus why the premium is 4x, hard to make sense of that, buy regular term and move on is my answer.
      Scott Nelson-Archer, CLU, ChFC
      281-770-8080 Direct / [email protected]

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