Comments on: Return of premium term life insurance overview

By: ken

ken — Wed, 07 Mar 2012 19:05:26 +0000

The, really “THE”, best way to figure out if Return of Premium Life is best for you is to speak to an expert.

The only other item I would mention is to be sure the “expert” candidates have achieved the CLU designation. (Chartered Life Underwriter) This is equivalent to a “Ph.D” in life insurance!

Then you can be well, “almost” sure they really do know what they are talking about.

By: Michael

Michael — Thu, 20 Nov 2008 21:08:20 +0000

@BK – thanks for your comments. While your thoughts are completely reasonable, I personally don’t see it that way. If one is willing to be disciplined enough to come up with all the extra money for a more expensive return of premium insurance policy, I believe that same person can be just as disciplined to put the same money in a Roth IRA (which has far less onerous restrictions than the typical ROP insurance policy).

To your point, far better to save something the wrong way than to not save at all. But the best answer is to save and to save intelligently.

Look forward to hearing from you again.

By: BK

BK — Wed, 19 Nov 2008 15:02:25 +0000

By the way, I just put “Beyond Paycheck to Paycheck” on my Amazon wishlist – Christmas is coming.

By: BK

BK — Wed, 19 Nov 2008 14:54:02 +0000

I have a couple of observations about this. True, a person could take the savings from purchasing a simple term life insurance and invest it themself. The problem is that about 90% of people will not do that. Second, a lot of investments that have the potential to do much better, have greater tax implications. And those that don’t, like a Roth IRA, have pretty strict rules when it comes to getting your money out before 59 1/2 (I think that’s right).

So, for arguments sake, lets say a person is a lazy, undisciplined financial slob – or the average American. Wouldn’t this be a way for them to have piece of mind as well as some sort of a nestegg? It may not be ideal, but it may be a good savings option for a lot of people.

I am certainly not pro return of premium life insurance, but I can also see the value of it for quite a few people. I do invest in mutual funds and have a Roth and a 401k – what are some other options as far as low tax / high yield investments? I think this is especially critical considering some of the talk surrounding the tax implications for investors with the change in leadership in White House.

Regards