Some points on pros and cons of term plan with return of premium are as follows. Also check out the major advantages and disadvantages to know more about life insurance.
Pros of term plan with return of premium
1. Term plan comes with multiple premium payment options
2. The premium will be refunded if insured person survived during policy tenure.
3. Additional riders provide ensured security.
Cons of term plan with return of premium
1. No interest will be added to the maturity benefits in this type of policy
2. ROP will be refunded only if the policy holder survived during policy tenure.
3. Higher premium payment in this type of policy compared to other policy.
What are some advantages of life insurance?
Life insurance can be assigned for personal loans, easy to take loans if person has policy. Loans taken using policy are income tax free, it comes with tax benefits.
What are some disadvantages of life insurance?
Buying expensive life insurance policy may increase the expense. Buying life insurance policy without the need is not advisable. It has risks of not paying the policy.