Return Of Premium

Fred asks what Dave thinks of return of premium insurance. Dave doesn't like it at all for one reason.

QUESTION: Fred on Facebook asks what Dave thinks of return of premium insurance. Dave doesn’t like it at all for one reason.

ANSWER: I would never buy that. Return of premium is a gimmick that’s added to different kinds of insurance, particularly life insurance or maybe long term care insurance. It says if you don’t use the insurance by a certain age, they’ll give you all the premiums that you paid back in. In order to do that, you must pay a little extra for this feature.

But if you take that extra amount and simply invest that, you would have your premiums. That’s how they are doing it. You can return yourself all your premiums whether you use it or not.

Jump-Start Your Goals!

Jump-Start Your Goals!

Get our 8-Day JUMP START series and weekly newsletter that are packed with articles and tools to help you win with money.

Find a Local Expert

Start with a Local Expert

Get trustworthy guidance to help you save money on life’s most complicated financial decisions.

Find an ELP

Thank You!

Your 8-Day Jump Start is on its way to !