Senior Life Return of Premium Life Insurance Review
last updated on March 7, 2022Are you interested in learning more about Senior Life’s Return of Premium life insurance product?
If so, you’ve found the right article!
I will review how the Senior Life Return of Premium life insurance product works, so you can decide if it’s a good fit for your insurance goals.
Let’s get started!
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About Senior Life Insurance Company
Senior Life Insurance Company was founded in 1970 by Ron Powell and Dale Powel. The company offers life insurance products in 40 states and the District of Columbia. It is headquartered in Thomasville, Georgia.
Senior Life Insurance has licensed agents who work in the field. However, the company specializes mostly in selling burial insurance over the phone through TV commercials run on multiple networks.
Senior Life offers a range of whole life and term life insurance plans, also marketed as final expense insurance policies, for seniors up to the age of 85.
These policies are designed to help ease the financial burden of the family after the death of the insured.
Final expense policies allow paying for final expenses such as burial, legal costs, medical bills, and any outstanding debts.
How does Return of Premium work?
Senior Life is among a group of insurance companies that offer the increasingly popular return of premium policies.
Return of premium policies are a unique form of term life insurance policies. The main difference between return of premium and a regular policy is that at the end of the 20-year term, policyholders can get their premiums back.
With most term life insurance policies, you don’t get back the premiums if you are alive after the term of the policy expires.
Get your premiums back!
Return of premium, on the contrary, allows you to get paid back everything that you have invested – minus any fees or charges – should you outlive the term of the policy.
Essentially, after a pre-set period of time, in this case 20 years with a Senior Life Return of Premium policy, you can end the policy and get back all of your premium payments.
This will give you peace of mind knowing that you don’t have to start all over again with a new term policy.
Should you die during the term life insurance policy, return of premium guarantees that your beneficiary will receive the death benefit.
The return of premium policy doesn’t offer a return of premiums in the following cases:
- If the death benefit is paid
- If the policy lapses, or
- If the policy is canceled by the owner.
The policy issue ages are 20-60 for non-tobacco users and 20-45 for tobacco users within the past 12 months.
Benefits of Return of Premium plans:
- Return of premium plans allow you to receive back the money you paid over the years if you outlive the term of the policy. The more you have invested, the more you will get back.
- A return of premium policy can represent a huge benefit that can be invested in retirement or a child’s college fund, or another insurance policy.
- A return of premium life insurance policy can be seen as a forced savings plan. It is a good option for people who are otherwise struggling to save money for retirement, for example.
- The return sum is tax-free. Withdrawing the money at the end of the term will not require any additional taxes.
- Policyholders can borrow against the cash value of the policy as long as it is earning an interest rate.
Drawbacks of Return of Premium plans
There are some drawbacks to a return of premium policy. They include:
- The return of premium is 100% only for the annual mode of payment. If you choose monthly payments, it decreases to 98%.
- With the return of premium, you will get back exactly the amount you paid. In other words, you don’t earn interest on your money.
- The return of premium benefit is available only if the policy is still in force at the end of the policy term.
- There is no refund for early termination. If you should cancel the policy, you will lose more than if you had regular term insurance.
- The premium costs for a Senior Life Return of Premium plan are significantly higher than with regular term life insurance policies.
- A return of premium requires uninterrupted payment and a steady income that can withstand changing conditions over time.
- You can benefit from this plan only if you outlive the policy. Therefore, if you have significant health issues this policy might not be the best option.
- With a return of premium life insurance policy you are locked into a more expensive policy for the entire period of 20 years. This means that you can’t use this money to make other investments or pay down your mortgage debt until the end of the policy term.
- The final rates of return of premium life insurance policy may differ from region to region. They depend on the access to care and other lifestyle factors typical for the place you live in.
Getting A Second Opinion
Whether you like or do not like the details of the Senior Life Return Of Premium term life insurance plan, it’s vital to get a second opinion.
In many circumstances, it is possible to find a return of premium term life insurance plan offering more coverage at a more competitive rate than Senior Life.
And the good news is we can help!
At Buy Life Insurance For Burial, we have access to multiple companies with return of premium life insurance policies. We will do the shopping for you to see which options work best.
What To Do Next
To get a free quote, you can do one of the following:
- Call Us Directly At 888-626-0439 Now. One of our friendly representatives will answer and provide a no-hassle quote within 10 minutes or less.
- Request A Quote Online. On the side or top of your screen is a quote tool. You can compare return of premium term life insurance quotes easily with this tool to see how competitive our policies can be.