Last week I talked about some of the most dangerous occupations in the United States with some surprising results. One of the main points I was trying to illustrate is the danger of making assumptions, especially when it comes to protecting your family. For example, a natural assumption would be that most people recognize the need for taking out life insurance on themselves to protect their families, but often times, that isn’t the case.

It’s also important to make sure you have the right kind of insurance, whether it be term or some permanent form. And within each of these two main categories of life insurance, there are quite a few variations and it is just as important to have the right variation. Unfortunately many people tend to view insurance, whether it is life insurance or car insurance, as a commodity; as if the only thing that mattered is getting the cheapest price. However, not all insurance is created equally, and not even all term insurance is created equally. In fact, one of the more revolutionary types of insurance in recent years has really kind of broken the mold on traditional term life insurance.

One of the things that bothers many people about life insurance is the fact that if you don’t die during the term of the policy, all the money you’ve paid in premiums is down the drain. But with return of premium term insurance, that money isn’t lost forever.

Let me give you an example. Say for instance that you have a 10-year loan for $100,000. You want to protect your family in case you die before the loan is paid off. That way, they won’t have to worry where the money will come from to pay that monthly mortgage payment. Now, the bank is probably more than willing to sell you credit life insurance and they’ll make it convenient, too, just adding it to your monthly payment. However, when you get your loan paid off, your insurance disappears. Now, this might be okay if you have other insurance in force to protect your family. However, if this is all you have and you get sick, it may be difficult, if not impossible to get coverage after your loan is paid off.

On top of that, credit life is among the most expensive you can get. It would cost approximately an extra $53 per month, added to your loan payment, to cover that $100,000. And after the 10 years is up, your coverage is gone. With EMC National Life’s Ultra Value Return of Premium Term, a 40-year old male non-tobacco user in good health would only pay $33 a month. But here’s the kicker. Instead of it lasting for 10 years and running out like the credit life you’d get from a financial institution, the EMC National Life policy runs for 20 years at that guaranteed premium of $33 per month and if you are still alive at the end of that 20-year term, the company will send you a check for just under $8,000.

You might think that when they send you that check, you would have to reinvest it in another policy or some type of investment with that company, but that isn’t the case at all. The money is yours to spend however you choose. Use it for a down payment on a new car, stick it in the bank, invest in stocks, spend foolishly, whatever you want to do with it is your business – no strings attached.

To summarize, then, it is very important to remember the reason you need the insurance and buy the right kind of policy. For long term needs, it’s usually best to buy permanent insurance, such as whole life or universal life. For a temporary need, term insurance is normally the best. There are many different kinds of each of those two major types of life insurance, though, so do your homework and find a trusted advisor. Don’t rely on price alone, because unfortunately, sometimes you really do get what you pay for.

Call 1-800-482-6426 to find out more about this great new opportunity to be more in control of your protection dollars. I was skeptical, too, when this new type of policy came out, but not anymore. Call Hummel Insurance Services, your Trusted Choice Agency to find out how Return of Premium Term can benefit you and your family.