When you listen to the term money-back, the chances are that you are immediately interested in the matter. There’s no reason why you shouldn’t be, after all, you’re getting back the funds that you have invested in a matter, which means that your investment was fruitful. However, with most insurances, this might not be the case. As you pay your premiums, you do not get them back if you have outlasted the term of the insurance without making a claim. However, you would be glad to know that you can get this amount back if you have chosen Whole-Life Insurance or Universal Life Insurance. Wondering how? Well, read on to find out.
Simplifying Money-Back Life Insurance for you
When you’re applying for Universal or Whole Life Insurance, you know that the insurance term is so long that it can compare it to your whole life in terms of years. These terms can be anywhere between 90-110 years. You would also know that these policies have a cash-value component that increases over time as you pay your monthly premiums as a part of the premium is contributed to the cash component. However, the remaining percentage of the premium is treated as it is,making you think that you would never get it back.
You would be pleased to know that you would be getting the premium amount back with these policies if you plan smart when applying for the insurance. While the insurance company is drawing out the contract, customize it and add a money-back clause. Putting this money-back clause would enable you to get back the premium amount at the end of the maturity period. In the unfortunate event of you passing away, your beneficiaries will get the premium amount. The percentage varies depending on the paperwork, and you can discuss this matter with your financial advisor.
Several advantages of Money-Back Life Insurance
If you do add a Money-Back or an ROI clause to your insurance contract, there are several advantages that you will benefit from. Have a look at the list below to know what they are:
Coming back to the money-back clause, you may have to pay a high premium due to this. However, when you weigh in the benefits, you can see for yourself that in the long run, the policy can be a moneymaker; the choice would be up to to you, whether to opt for this or not.