What Is Term Plus Life Insurance?
Term plus life insurance is also known by other names, and often referred to as a "return-of-premium term life insurance" policy. A term plus life insurance policy has the regular term life insurance component, but also has other benefits as well.
Other People Are Reading
-
Term Life Insurance
-
Term life insurance is coverage for a particular length of time, or term. With a term life insurance policy, you select how much coverage you want and the length of the term.
Death Benefit
-
If you die during the active period of the term of coverage, your beneficiary will receive the face value of the term life insurance policy. This is the case with regular term life insurance and with term plus life insurance.
-
Mortgage Protection
-
Many term plus policies offer an added benefit of mortgage protection. They are often called "mortgage term plus" policies because the policy will pay off your mortgage if you die during the term of coverage.
Additional Benefits
-
Some term plus insurance policies will offer additional death benefits, as well as benefits while you are still alive. Additional benefits often include payment of your mortgage if you become disabled, waiver of premium payments during a period of unemployment and additional death benefits if you die of certain types of illnesses.
Return of Premium
-
The main feature of the term plus policy is that the insurance company will give back all of the money you paid on the premium at the end of the term, if regular payments were made for the entire term.
Cost Difference
-
Because money is returned to the insured at the end of the term, term plus insurance policies usually cost more than regular term life insurance.
-
