Insurance, Money back policy?

Question

Is there any insurance policy where i can get money back after maturity? Let take for instance, if i am paying premium $C100.00 for ten year policy. 100*12*10=12000+interest.as maturity amount.

Answer 1

In the past, they had such policies here in the Canadian Market place (eg: endowment policies or even the old Confed Life G20 products).  Living Benefits (eg: Critical Illness or Disability Insurance) have ROP riders but they do not pay interest.  It basically acts like a forced savings account with 0% interest.

There are some G20 products left that can achieve your needs, but the interest is not like how it used to be back in the 1980s.

For example, the premium for a Transamerica Life of Canada G20 policy for a Male 40 $100K death benefit is $1,001 per year for 20 yrs.  The Guaranteed Cash Value at the end of 20 yrs is $19,020, and by year 40, its only $28,263.

On the flip side, Canada Life's G20 product is $3,321 per year for 20 yrs.  The guaranteed cash value at the end of year 20 is $48,600, and the non-guaranteed cash value based on current dividend scales is $90,326.  

So there are products out there that may meet your needs, whether it can meet your ROI expectations is something else.

Answer 2

It depends on the type of insurance you are talking about. Life, health, disability home owners etc. When ever an insurance company offers policy with a cash value or cash back they are simply charging you a little more money and investing the extra premium so it will grow. I know of life and disability policies that provide this feature. It is a good idea for those people who won't buy insurance be cause they don't want to "waste" the money and for those who would not really invest in other things such as mutual funds.

Answer 3

Then you want to add  a return of premium rider to the policy. It seems as tho you may be getting a term policy. Just ask for a return of premium rider.  It isn't worth it because you are in essence giving money to the company, allowing them to invest that money for THEM NOT YOU, and then they give you the principal back with no interest. Doesn't seem good to me. Take that money for the rider and put it into a money market account, that would be better for YOU!