Life insurance policy that covers whether the policy holder lives or dies is?

Question

A life insurance policy that pays whether the policyholder lives or dies is called??

Im trying to find out good insurance, and figure out what they all mean.

Thank you!!

Answer 1

The only policy I know that would pay you if you live or provide a death benefit if you die is called an endowment policy.  Most companies quit selling them many years ago because of IRS rules.  You might also buy a Term policy with a return of premium rider which would refund the premiums paid, but not pay the face amount if you live beyond the term of the policy.  Other than those, I don't have a clue as to what you might be looking for.

Answer 2

ROP term or term insurance with a return of premium rider attached.

Answer 3

There is no insurance such as you describe it. All insurance pays out upon the death of the owner. What I believe you are describing is a Return of Premium rider. Any policy you attach it to will be more expensive. Just be aware of that before doing anything. Remember there is no insurance that will pay out as you describe, unless it has thr RoP rider attached.

Answer 4

You might be asking a more simple question than you actually are.  Can you re-phrase your question without using the word "policyholder"?

If the policyholder is you and you are also the insured (that's the complicated part you might not be asking), then the policy will pay when you die as long as it is in force at the time of your death.  So you can either buy a policy that will likely cover you until you die, or realize that insurance is so cheap because it isn't likely you would die during that time period.  

An alternative is to buy a return of premium term or cash oriented permanent policy.  These are often more expensive options than a level term or a death benefit oriented permanent policy.  The extra cost may or may not be worth it to you.  

I would start by talking with at least 3 different independent insurance brokers or a fee-only financial planner to get a better perspective on what your risk is and how to cover it.

Answer 5

A savings account.  

That's the one that pays you best, too.  

LIFE insurance, gives you odds on your death.  That's why it's cheaper than putting the money in the bank.  But if you're planning on living, you're better off investing in mutual funds than in insurance - the returns are much, much higher.

Answer 6

I think what you may be referring to is the difference between term life insurance and whole life insurance.