Selected Benefits basically offers several types of term life insurance, but each one has different objectives and is applicable in different situations. On the plans we offer, the premiums are guaranteed to never increase over the term of the policy.
Term Life with Return of Premium (ROP): This type of coverage will give you life insurance coverage for a specified amount for a specific amount of time with one enhancement. If you outlive the term period, you’ll receive 100% of the premiums paid to the insurance carrier back in a lump sum check. These plans are available in 10, 15, 20, 25 and 30 year terms. If you decide to cancel the plan early, you will generally receive an increasing percentage portion of the premiums. In other words, if you cancel a 30 year term ROP policy after year 20, you will only receive back 60% of the premiums paid. This almost never happens since there is no downside to keeping the policy until the full term expires. You’re getting it all back anyway, so why would you cancel?
Term Life with Living Benefits: This is currently our most popular option for obvious reasons. This policy functions like any other term life plan in that if you pass away before the term is up, your beneficiary will receive 100% of the death benefit, but with one major enhancement. If you have either a chronic, critical or terminal illness, the plan will pay up to 90% of the covered face amount upon the diagnosis. For example, if a person contracts a chronic illness which is defined as not being able to perform 2 of the 6 normal activities of daily living, you will receive 90% of the face amount of the policy paid out on a monthly basis. Activities of daily living include bathing, continence, dressing, eating, toileting and transferring. This is a wonderful benefit since that new monthly income can be used to pay for a assisted living facility or a nurse which will be necessary in this situation. To be continued…..