Recently, a younger business owner client of mine was inquiring about purchasing a term life insurance policy. Like me, he recently just had a child and was concerned about providing financial security to his family in the event of his unexpected passing. A term life policy makes total sense for his situation, but what we he also wanted gave it a twist. In addition to 30 year term life policy, he wanted to add what’s called a return of premium rider. For those that are not familiar, the return of premium rider allows the policy holder to get a full refund of all the premiums paid at the end of the contract. At first, it sounds like a pretty good deal. The most common complaint that consumers have with life insurance is that if you don’t die, all the money goes directly to the insurance company. If this is the case, then purchasing the return of premium rider seems totally worth it.
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