Life Insurance
4 months ago
Return of premium term life insurance — is it worth the higher cost?
30
I'm comparing two 30-year term life policies for $500k: standard term ($42/month) vs return of premium term ($87/month). With ROP, if I outlive the policy, they refund all premiums paid ($87 × 12 × 30 = $31,320). The extra premium over 30 years is $45 × 12 × 30 = $16,200. If I invest that $16,200 difference at 7%, it would grow to about $44,000 — more than the premium refund. Am I thinking about this correctly?
DR
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