Return of Premium Term Life Insurance

Bharat Prajapati By Bharat Prajapati, 18th Feb 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/11i7qalj/
Posted in Wikinut>Money>Insurance

Insurance, in term of law and economics, is a form of risk management generally used to minimize the risk against major loss.

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss.

Return of Premium Life Insurance

Insurance, in term of law and economics, is a form of risk management generally used to minimize the risk against major loss.

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss.

An insurer is a firm or agent offering insurance and insured is a person purchasing it. The insurance rate is a provision used to determine the cost of it, which is undoubtedly known as premium.

Premium is an amount significantly charged for insurance coverage.

Return of premium life insurance is referred to term insurance policy. The fact is that the insurance company ' returns the premiums you have paid for coverage over that fixed term period if coverage is never used.

For example, a $1million policy bought for $50000 for a period of over 30 years would result in the $50000 being refunded to the policyholder.

Experts view to the rate of return being less than in an ordinary investment, as well as the additional cost of the policy is less compared to basic term insurance policies. If the insured cancels the policy at any time, no money is refunded.

As this was the original concept, many current policies do allow exact refunds at some terms during the life of the policy.

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