THE POLICY DETERMINES
What may be returned.
When it may be returned.
What conditions apply.
What happens if the policy is surrendered.
What benefits remain.
What charges apply.
Return of Premium
Understand what return of premium really means.
Understand what return of premium means, how it can work, and what questions to ask before assuming premiums will simply be returned.
RETURN OF PREMIUM VS. CASH VALUE
RETURN OF PREMIUM - A contractual feature that may return specified premiums under defined conditions.
CASH VALUE - Value that may accumulate within certain permanent life insurance policies. Cash value is not automatically equal to premiums paid.
WHY THE DISTINCTION MATTERS
A policy that includes a return-of-premium feature and a permanent policy that accumulates cash value can work very differently. The timing, conditions, costs, guarantees, surrender provisions, death benefit, and available values may all be different.
QUESTIONS TO ASK BEFORE YOU BUY
What is guaranteed?
When does the benefit apply?
What conditions must be met?
How much premium is actually eligible to be returned?
What happens if I surrender the policy early?
What costs apply?
What happens to the death benefit?
What happens if I stop paying premiums?
DON'T JUST ASK WHETHER YOU GET YOUR MONEY BACK
Ask what you're getting in return for the money you pay. Insurance premiums pay for contractual benefits and protection. A return-of-premium feature, when available, is only one part of the overall policy design.
UNDERSTAND THE CONTRACT BEFORE YOU ASSUME WHAT 'RETURN OF PREMIUM' MEANS.
PAGE-SPECIFIC DISCLOSURE
Return-of-premium features vary by product and contract. The amount, timing, eligibility requirements, costs, and conditions associated with any return of premium depend on the specific policy. Review the policy contract for applicable guarantees and limitations. Return of premium is not necessarily the same as cash value, and neither should be assumed to equal the total premiums paid.
STANDARD WEBSITE DISCLOSURE
Important Information: This website provides general educational information and is not individualized financial, investment, insurance, tax, legal, or financial-aid advice. Product features, benefits, costs, risks, availability, eligibility, and contractual provisions vary by product, carrier, state, and individual circumstances. Please review applicable policy or contract documents and consult qualified professionals regarding your situation.
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