Return of Premium Life Insurance (Permanent)

AccuQuote Life Insurance · 2,859 views
Watch Return of Premium Life Insurance (Permanent) video. The Return of Premium Life Insurance (Permanent) video uploader AccuQuote Life Insurance says about, Life Insurance that'll refund your money if you cancel the policy? Sounds strange, right? Well, some life insurance companies are actually offering this option to their permanent life insurance customers. To find out why, watch this video. Byron Udell, Founder and CEO of AccuQuote explains more about how this "Return of Premium" or "ROP" option works.

Return of Premium TERM products, while relatively new in the world of life insurance, have been around now for over 15 years. We created a video to explain how those product work and you can click the link on your screen right now to watch that, or simply do a search for "Return of Premium Life Insurance - Term Life" on YouTube.

Today, I’m here to talk about a much more recent development in the design of certain PERMANENT life insurance products that, regardless of whether or not they have CASH values, provide the consumer with a chance to essentially change their mind after 25 years, and receive a 100% refund of all the premiums they’ve paid over the entire 25 years. There are several companies that are already doing this, and each one has its own rules, but the theme is the same. You have the opportunity to get all your money back IF you want to, after 25 years.

SO HOW can they do this, and WHY are they doing it?

First, understand that in a life insurance transaction, there is always a winner, and there’s always a loser. If you die with your policy in force, YOU WIN, and the insurance company LOSES. If you don’t believe me, do the math and you’ll see. On the other hand, If you DROP or cancel your policy before you die, you LOSE and the insurance company WINS.

And while there are rare exceptions, this principle is how the life insurance industry operates. The people who are smart enough to hold on to their policies until they die receive amazing returns, Those high returns are subsidized by the people who drop their policies before they die. The insurance companies count on this to happen, in order to make their business work!

Now, historically, plenty of people each year drop their policies… and from the insurance companies standpoint, the more the better. They’re off the hook and they’ll never have to pay a claim on any policies that fall off the books before the insured dies.

But the insurance companies actually want even more people to drop their policies. Especially after 25 years… as it’s getting closer to the time they’d otherwise have to pay the claim.

For example, a 55 year old, who pays, say $10,000 a year for a $1,000,000 policy, will have paid $250,000 in premiums over the first 25 years. But now, he’s 80 years old… and only a few years away from the insurance company having to cut a check for $1,000,000. So what are they doing about that? Well, some insurance companies are giving the clients an option to cancel the policy and get a refund of the $250,000, 100% tax-free!

Why? Because they KNOW that if YOU DIE a few years later WITH YOUR POLICY IN FORCE…THEY are gonna lose – big time, because they’ll have to write a $1,000,000 check!

This guaranteed refund option is, in essence, a financial incentive… an ethical bribe of sorts, to cancel your policy. And some people’ll grab it. Of course, you don’t have to, but some may want to. I don’t necessarily recommend you do that, as it’s pretty clear at age 80, you’d be a lot better off keeping the policy, leaving the $250,000 on the table, paying a few more $10,000 premiums, and then dying, so you family can get the full $1,000,000.

Make no mistake…the insurance companies know exactly what they’re doing. They know how to stack the deck so that they’re more likely to win.

But remember, YOU’RE in charge and if you know what to do, YOU can guarantee a win with your life insurance. It’s a pretty important thing… so...write down these six words: "Die with your policy in force."

You can win the game with any type of policy, but you increase your odds of winning if you own a policy with a guaranteed level premium for life…one that cannot be jacked up in the later years to force you out.

Since 1986, AccuQuote has helped over a million people save money and navigate the process of acquiring the most competitive life insurance policies in the market.

If you have questions, or want to get a quote, without a three-hour kitchen table face-off, give us a call at the number on your screen, or go to

I’m Byron Udell, and I hope this information was valuable. And thanks for listening.MQQt5ZOw5SI