http://cashmoneylife.com/return-of-premium-term-life-insurance/ Money Management, Small Business, Career Wed, 23 May 2012 21:16:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://cashmoneylife.com/return-of-premium-term-life-insurance/#comment-24427 Ryan Thu, 08 Jul 2010 12:46:15 +0000 http://cashmoneylife.com/?p=2523#comment-24427 I agree, Doug. Most people would be better off investing the difference. The other thing I didn't mention in the article is to read the terms carefully. Many of these policies contain clauses that state you will lose all premiums paid if you do not take the policy to term - so you wouldn't receive anything back if you cancel your policy early. I agree, Doug. Most people would be better off investing the difference. The other thing I didn’t mention in the article is to read the terms carefully. Many of these policies contain clauses that state you will lose all premiums paid if you do not take the policy to term – so you wouldn’t receive anything back if you cancel your policy early.

]]> http://cashmoneylife.com/return-of-premium-term-life-insurance/#comment-24426 Doug Warshauer Thu, 08 Jul 2010 11:47:40 +0000 http://cashmoneylife.com/?p=2523#comment-24426 While you'd need to compare two specific policies to see what the premiums for each are and to calculate the implied interest rate on the ROP policy, it sounds like a gimmick to me. As you pointed out, you're not really getting your money back because of inflation and forgone investment growth. Because it seems like a policy designed specifically to be misleading, I'd tend to shy away from buying it. While you’d need to compare two specific policies to see what the premiums for each are and to calculate the implied interest rate on the ROP policy, it sounds like a gimmick to me. As you pointed out, you’re not really getting your money back because of inflation and forgone investment growth. Because it seems like a policy designed specifically to be misleading, I’d tend to shy away from buying it.

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