How many life insurance policies can I own?

Woman standing in front of a green fence thinking, perhaps about how many life insurance policies she can own

Owning a life insurance policy makes sense. When you are no longer living, a life insurance payout helps your dependents manage debt, pay for education, and cover daily living expenses for a limited time. But how much life insurance do you need? And how many life insurance policies can you own?

How Many Life Insurance Policies Can You Own?

No rule limits the number of life insurance policies you can own. Many people own more than one policy. There are reasons to buy another policy—and reasons to consider alternatives.

Reasons to Buy Another Life Insurance Policy

  • You need additional coverage – Your current policy might not be enough if you get married, have children, or start a business. The monthly premium for a new policy might be less expensive than increasing coverage on an existing policy.
  • You want enough to pay off current debt but decrease coverage over time – Some consumers buy multiple term life insurance policies of varying length—10, 20, or 30 years. The insurance policies expire as they pay off specific debts, like a mortgage or another large loan. Or you may choose an additional policy that expires when you start receiving retirement benefits.
  • You don’t want to rely on one company – Just as many investors prefer to diversify their portfolio, many insurance policy owners want to buy coverage from more than one company. Although it is rare for an insurance company to go out of business, a policy from more than one company can give you peace of mind.

Reasons Not to Buy Another Life Insurance Policy

  • Cost of premiums – Buying another life insurance policy means paying another premium. And that might not be the most cost-effective option for you and your family.
  • An insurance policy rider might be enough – A policy rider is an add-on feature that features more benefits for an existing policy. Ask your life insurance company about policy riders that can increase your coverage and prevent the need to buy another policy.

Examples of benefits from a policy rider:

  • Purchase coverage at later dates
  • Convert a term life policy to a permanent policy
  • Pay for long-term care
  • Cover loans if you own a business

Before You Buy Another Policy

Before you buy another insurance policy, look at your current contract terms, and ask your insurance company about policy riders. Weigh the pros and cons of paying premiums for a second policy. If you decide to buy a new policy, ensure the terms satisfy your purchase goals. For more insight, read the post, How Much Life Insurance Do I Need? You can also visit the National Association of Insurance Commissioners’ website to download the Consumer’s Guide to Life Insurance.

Hunt Insurance of Raleigh is here to help you navigate the process of deciding if a new policy is right for you. Call us or complete our contact form.

Is Life Insurance Taxable?

Life insurance can replace some of your income, pay debts, and take care of your beneficiaries’ expenses. But is life insurance taxable?

Is Life Insurance Taxable?

Generally, your life insurance death benefit is not taxable. Your beneficiary will receive a tax-free sum. But if you do not have term life insurance, there are exceptions.

When Is Life Insurance Taxable?

Is life insurance taxable infographic from Hunt Insurance of Raleigh, NC

Life insurance is taxable in specific situations related to permanent life insurance, which includes whole life, universal life, and variable life policies. Term life insurance, however, guarantees a payout, and no taxes are involved.

Taxes for permanent life insurance:

  • Delayed payout – If you add a clause in your policy for the insurer to hold the death benefit before releasing it to the beneficiary, interest will accrue. And your beneficiary must pay taxes on the interest. Or, if your beneficiary asks the insurer to hold the fund temporarily, taxes are due on the interest income.
  • Incremental payout – When the full death benefit is paid in installments (e.g., monthly) until the funds are exhausted, your beneficiary will not owe taxes. But you may be taxed on the interest gained as the policy ages.
  • Cash value life insurance
    • Outstanding loans against a cash value policy are taxable. If you don’t pay back the loan before you die, the balance is subtracted from the death benefit.
    • If you surrender a policy for cash and make a profit, the profit is taxable.
    • Withdrawals greater than what you paid into the policy are taxable.
  • Sell a policy – If you sell the policy’s rights to a third party and make a profit, the profit is taxable.
  • Group life insurance – If you receive group life insurance from your employer, the amount above $50,000 is considered taxable income. And the death benefit is taxable.
  • Inheritance tax – If you name your estate as your life insurance beneficiary and live in a state with an inheritance tax, the death benefit might be taxable. Retirement accounts, savings, your home, and other assets increase the value of your estate. If your estate’s value exceeds the tax threshold, the death benefit may be taxed.

How to Avoid Taxes on Life Insurance

If the value of your estate is significant, you can avoid taxes on life insurance:

  • Don’t name your estate as beneficiary.
  • If your estate’s value exceeds $11.58 million (as of 2020), transfer policy ownership to another person. Visit the Estate Tax page on the Internal Revenue website for details.
  • Create an irrevocable life insurance trust if you want to maintain control of the policy but not be the legal owner.

Note: If you die within three years of transferring ownership of a life insurance policy, the full death benefit is automatically included in the value of your estate.

Professional Advice on Life Insurance Taxes

Hunt Insurance of Raleigh, NC, offers free consultations and professional guidance to help you find a life insurance policy that is right for you. Call, text, or submit our contact form to request a free consultation.

Whole Life Insurance Policy – 5 Questions to Ask First

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A whole life insurance policy provides lifetime coverage and has a cash savings component. Sounds good, but is this option right for you? Ask yourself these questions before purchasing a policy.

1. What Is a Whole a Life Insurance Policy?

A whole life insurance policy is insurance that lasts your whole—or entire—life if you pay the policy premiums. It is a type of permanent life insurance. The policy has a guaranteed death benefit, and it accumulates cash value at a rate that your insurer determines.

2. Is Whole Life Insurance Right for Me?

Whole life insurance might be right for you in these situations:

  • You need coverage that lasts the rest of your life.
  • You can benefit from tax-deferred benefits of cash accumulation, which build over time.
  • You can afford to pay higher premiums.

3. How Much Insurance Do I Need?

The amount of insurance you need depends on how much income you need to replace, the number of dependents you have, and what expenses your dependents will incur if you are no longer living.

Factors to include in your calculation:

  • Income
  • Mortgage
  • Education for children
  • Expenses, including debt and funeral expenses
  • Savings

4. How Much Insurance Can I Afford?

Although it is ideal to purchase enough insurance to replace your income and care for your loved ones for several years, other factors may prevent you from doing so.

What to consider:

  • Your budget may limit the amount of insurance you can afford.
  • Still, life insurance is protection for your family.
  • Without buying a policy with premiums that you cannot afford, consider your essential expenses and whether limiting your spending on hobbies, recreation, or other activities can help you cover end-of-life expenses for your family.
  • Whole life insurance premiums are higher than term life insurance premiums.

5.  How Does Term Life Insurance Compare?

Term life insurance differs from whole life insurance in several ways:

  • It provides coverage for a term, or limited period—usually between 10 to 30 years.
  • It does not include a cash savings feature.
  • It is less expensive than whole life insurance.

For more information on the differences between term life and whole life insurance, read our page, Term Life vs. Whole Life Insurance – How to Decide.

Hunt Life Insurance of Raleigh, NC offers hassle-free quotes and advice to help you choose an insurance policy that is right for you, your family, and your budget. Call or text us or complete our contact form for more information.

5 Facts You Should Know About Residual Disability Benefits

Disability income insurance replaces a portion of your income if you are ill or injured and unable to work. Some disability insurance plans offer residual benefits even if you are sick or injured but can still work part time. What is residual disability income? And how are payments calculated?

1. What Is a Residual Disability Income Payment?

A residual disability income payment is a reduced benefit based on a percentage of your lost income if you can only work part time due to an illness or injury. Your insurer may offer an add-on feature, called a partial disability rider, that allows you to purchase the option to receive partial income replacement if you can still work part-time.

According to Bureau of Labor statistics, in 2019, 32 percent of workers with a disability worked part time, compared with 17 percent for those with no disability. So, for many families, a residual disability rider is worth considering.

2. How Are Residual Disability Income Payments Calculated?

Residual disability income payments are calculated based on the income you are losing if you can only work part time. You will receive a percentage of the total monthly disability benefit stated in your policy. In many cases, if your income loss is greater than 75%, the insurer will pay you 100% of your monthly disability insurance benefit.

For example:

  • Your disability income insurance payment is $3,000 per month for full-time disability.
  • You purchased a residual disability income rider.
  • After an illness or injury, you can only work 40% of your full-time schedule.
  • Depending on your policy, the residual payment will be approximately 60% of $3,000 (total monthly benefit) or $1,800 per month.

3. Do You Qualify for Residual Disability Income?

Infographic of five facts about residual disability benefits

You might qualify for residual disability income if your disability insurance automatically includes residual disability benefits or if you purchased a rider for it.

Although you must read your policy and contact your insurer to confirm eligibility, you might qualify in these circumstances:

  • Loss of income: As a result of your disability, your work schedule is reduced, and you lost income.
  • Unable to perform all duties: You are unable to complete some of your job responsibilities.
  • Unable to work your full schedule: Your disability prevents you from working the same number of hours as before your illness or injury.

4. What Are Your Options for a Residual Disability Rider?

Many insurers that offer a residual disability rider have at least two options to choose from—basic and enhanced. As expected, the cost of the rider increases with the level of benefits it provides.

  • Basic – A basic rider usually requires a significant percentage of lost income before you can receive partial payment.
  • Enhanced – An enhanced rider reduces the percentage of lost income you must experience before benefits are paid. And an enhanced rider offers more benefits overall.

5. Do You Need a Residual Disability Rider?

Whether or not you need a residual disability rider depends on your unique circumstances.

Some factors to consider:

  • Amount of your savings
  • Number of your dependents
  • How a disability would affect your work performance and the physical or mental requirements for your job
  •  Your living expenses and any debt
  • How much disability income insurance you need or already have

Interested in NC Disability Income Insurance?

If you live in North Carolina and are interested in disability income insurance, contact Hunt Insurance of Raleigh. We will give you personalized service and thorough answers to help you decide if disability insurance is right for you.

How to Get a Term Life Insurance Quote

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A term life insurance quote is an estimate of the monthly cost of a term life insurance policy. The quote is based on your age, health history, lifestyle, and amount of coverage you want.

Need a Quote for Term Life Insurance?

Please speak with us at Hunt Insurance of Raleigh, NC. You’ll receive personalized service from John Hunt, a licensed insurance agent for the state of North Carolina. Of course, you can fill in the blanks and get an online quote. But for customized service that saves you time, you might want to speak with an insurance agent anyway. We offer hassle-free quotes.

Information Needed for a Term Life Insurance Quote

Below is the information you need for a term life insurance quote with Hunt Insurance of Raleigh. But before you begin, read our blog post, How Much Life Insurance Do I Need?

  • Your zip code
  • Gender
  • Date of birth
  • Height
  • Weight
  • Tobacco use within the past five years
  • Medical and prescription history
  • Have your parent or siblings been diagnosed before age 70 with any of these diseases: cancer, diabetes, cardiovascular, kidney disease
  • Are you a U.S. resident?
  • Do you have a spouse or a domestic partner?
  • Is this your first time buying term life insurance? Or are you purchasing additional insurance or replacing an existing policy?
  • When would you like coverage to begin?
  • What’s the amount of coverage you want?
  • How long do you want coverage to last?

Why Speak with John Hunt for a Term Life Insurance Quote?

An online term life insurance quote is an estimate of the monthly cost. But a representative will still contact you for more information about your health history and lifestyle.

You’ll benefit from John Hunt’s service in several ways:

  • He has more than a decade of experience in the insurance business.
  • His insight helps him tailor the conversation with questions and explanations you need to make an informed decision. An online estimate tool can’t do that.
  • He’ll thoroughly answer your questions and give you guidance to avoid over- or under-insuring yourself with term life insurance.
  • You can text, call, or e-mail him.

Even if you complete an online form, you’ll ultimately need to speak with an agent to get clear answers to your questions and to provide additional information. If you schedule a free consultation with John Hunt, he’ll answer all your questions and gather information from you upfront to give you a term life insurance quote that considers your budget and needs.

Hunt Life Insurance is a local agency available to Raleigh, Durham, Cary, Morrisville, Garner, Clayton, Chapel Hill, and beyond.

How Much Life Insurance Do I Need?

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You need enough life insurance to replace your income and cover your dependents’ current and future financial obligations, including outstanding debt, childcare, health care, and education expenses.

How to Calculate How Much Insurance You Need

You can calculate how much life insurance you need by adding your salary, debt, and other obligations. From that total, subtract your assets. The balance represents how much insurance you need. Multiply the balance by how many years you want the coverage to last. You can use an online insurance calculator or calculate it yourself. Need more details?

Income and expenses

When you calculate your income and expenses to determine how much life insurance you need, list everything. Your list might include:

  • Your yearly, after-tax income from all sources
  • Outstanding debt that your survivors might become responsible for, including credit cards, autos, or a mortgage
  • Cost of raising children, including childcare
  • Cost of caring for an aging parent
  • Current and future education expenses
  • Food, clothing, medical, and vacation expenses
  • Funeral expenses


Assets and resources vary with each person. For accuracy in calculating how much life insurance you need, make a comprehensive list. Your assets might include the following:

  • Savings
  • College funds
  • Existing insurance policies

What’s Next?

  • Subtract your assets from the total of your income and expenses. After subtracting your assets, the total represents the amount of insurance your dependents need each year.
  • Multiply the total by ten for ten years of coverage. Other factors can influence the years of life insurance coverage you choose:
    • Age of your dependent children
    • Number of years left before you’re eligible for retirement income
    • Family members who will remain dependents due to illness or other factors, regardless of their age

Factors that Can Change How Much Insurance You Need

Life events can increase or decrease how much life insurance you need.

  • Just starting your family – If you’re starting a family and want to have children, the amount of coverage you need will increase with each child.
  • Children become adults – As your kids complete their education and become independent, you might be able to reduce the amount of coverage you need.
  • Family responsibility – If a family member becomes ill and medical expenses increase, or if you become responsible for an aging parent, think about how much life insurance you need.
  • Retirement – As you reach retirement age and have access to more savings and investments, the amount of life insurance your dependents need will likely decrease.

As you’ve read, many factors influence how much life insurance you need. We encourage you to contact us at Hunt Insurance of Raleigh, NC. We’ll answer your questions, explain other factors to consider, and give you a hassle-free quote. Call, text, or e-mail us.

How Much Does Disability Income Insurance Pay?

Disability income insurance replaces a percentage of your income if you’re ill or injured and unable to work. Whether you live alone or have family members that depend on you, having a portion of your income replaced can give you peace of mind and ease the stress of being ill and unable to work. Although it sounds like a good idea, is it worth it? And how much income replacement will you receive?

How Much Will Disability Income Insurance Pay?

Disability income insurance generally pays 45% -65% of your gross income if you have short-term disability coverage. Long-term disability insurance pays typically 40% – 50% of your gross income. The payments are tax free. As your monthly benefit increases, so will your premiums.

Are There Age Limits for Applying?

You must be at least 18 years old but not more than 60 years old to apply for disability income insurance.

How Much Are Disability Income Premiums?

Premiums are typically 1.5% and 3% of your gross income. Your gender, age, health status, and lifestyle affect your premiums. If you smoke, your premiums will be higher.

Infographic for disability income insurance from Hunt Insurance of Raleigh, NC

How Long Does Coverage Last?

Disability income coverage length depends on whether you’re receiving short-term or long-term disability insurance. You might be able to purchase a rider—or add-on—to extend your coverage period.

Short-term disability insurance – Although it depends on the policy, coverage usually lasts three to six months.

Long-term disability insurance – Most insurance companies have plans that have a maximum benefit period of two to ten years.

When Does Coverage Begin?

There is a waiting period—usually 30 days from the date your coverage begins—before you can receive benefit payments. If you become ill or injured and unable to work, there is usually a 30- to 45-day waiting period before the insurance company processes your first benefit payment. Payments are generally issued monthly.

Unless your policy states otherwise, disability income insurance payments don’t coordinate with Social Security Disability payments. You’ll receive separate checks.

How Much Disability Income Insurance Do You Need?

If you decide to purchase disability income insurance, purchase enough to care for your needs—food, shelter, and clothing. Your list of monthly expenses might include:

  • Cleaning supplies
  • Food
  • Health care
  • Internet
  • Mobile phone bill
  • Mortgage or rent payment
  • Necessary clothing
  • Needs for dependents living in your household
  • Personal care products
  • Transportation – car payment, gas, public transportation fees
  • Utilities

If you’re interested in partial income replacement if you’re unable to work for medical reasons, Hunt Insurance of Raleigh, NC, can help. We’ll review your options for disability income insurance and guide you in deciding how much disability income insurance you need.

Term Life vs. Whole Life Insurance – How to Decide

Trying to decide whether to purchase term life or whole life insurance? Although term life insurance is the most common selection, which one is right for you? After you understand the difference, it will be easier to select a policy.

What Is Term Life Insurance?

Term life insurance provides coverage for a specific period or term. Coverage periods are usually offered in increments of five years—usually between ten and 30 years. When the term ends, you can renew the policy, convert to a permanent policy, or let the policy expire.

  • Premiums – Your age, health history, lifestyle, the term length, and the amount of coverage you want will affect your premiums. Term life insurance monthly premiums are less expensive than permanent life insurance premiums.
  • Payout – Your beneficiary is guaranteed a payout if you die during the term of your policy.
  • Cash value – Unlike permanent life insurance, term life doesn’t build cash value.

What term length should you choose?

Consider a policy that provides coverage until your dependent children, if any, have completed college and live on their own. At the end of the term, if you have fewer dependents, you can lower your coverage amount and save money on premiums. Or you can select a term that lasts until you retire if you’re leaving your retirement income to a beneficiary and can reduce your life insurance coverage.

What Is Whole Life Insurance?

Whole life insurance is a type of permanent life insurance. It provides coverage for your entire—or whole—life. Your beneficiary will receive a payout when you die. And the policy includes a use-it-or-lose-it cash savings account that accumulates over the years as you pay premiums.

  • Premiums – Your age, health history, lifestyle, and insurance coverage amount will affect your premiums. Whole life insurance monthly premiums are higher than term life premiums—five to fifteen times higher.
  • Payout – If your premium payments are current, your beneficiary is guaranteed to receive a payout.
  • Cash valueWhole life insurance builds cash value over time. It’s a tax-deferred “living benefit” for you. If you die, your beneficiary will receive the death benefit, but the cash value will return to the insurance company. 

It takes time to weigh the facts and decide which policy is best for you. Our post, Whole Life Insurance Policy – 5 Questions to Ask First, gives details on what you should consider before selecting whole life insurance.

How Much Life Insurance Do You Need?

Think about how much life insurance is needed to replace your income and care for your beneficiary and dependents if you die.

  • Some experts recommend that you purchase life insurance that equals ten to 12 times your annual income.
  • Other experts advise that you multiply your annual income times the number of years left until you retire.
  • If you have a stay-at-home spouse, consider the cost of caring for your children or home if your loved one predeceases you. Get life insurance for your spouse, too.
Infograph to highlight the differences between term and whole life insurance; from Hunt Insurance of Raleigh

Term Life vs. Whole Life – Five Questions to Ask Yourself

Take another look at the differences between term life and whole life insurance. Ask yourself the questions below. Confirm your reasoning with a licensed insurance agent who can help you compare your options, costs, and the long-term effects of the type of insurance you choose.

  1. How many family members will depend on my income for my entire life?
  2. Do I have debt that limits what I can afford to pay for premiums each month?
  3. What is the value of my assets and estate? Am I subject to an estate tax that I can pay with the tax-deferred cash value of a whole life insurance policy?
  4. Will I have enough savings to self-insure at the end of my term life policy, or will I need to renew or convert it?
  5. Do I have valid reasons to pay higher premiums for whole life insurance that builds cash value? Or can I invest elsewhere and get a higher return?

Start the conversation with Hunt Insurance of Raleigh-Durham, NC. Contact us today.

How Do You Calculate the Cash Value of Life Insurance?

Hands of a man working on a laptop; perhaps to calculate cash value of his life insurance

Interested in calculating the cash value of your life insurance? If you have permanent life insurance, a portion of the premiums you pay gradually accumulates in a savings account. Whole, variable, and universal life insurance policies are types of permanent life insurance that accumulate cash value. How can you determine the cash value of your policy?

Calculating the Cash Value of Life Insurance

You can calculate your life insurance’s cash value by adding the total of the premium payments you’ve made for the policy and subtracting fees, commissions, and expenses charged by the insurer.

The insurance company uses your premium payments in three ways:

  1. Death benefit (the payout to your beneficiary)
  2. Insurance company’s fees and profits
  3. Cash savings account

The distribution of your premium payments means that your permanent life insurance policy builds cash value over time. But knowing the cash value of the policy is essential. If you don’t use it, your beneficiary will receive the death benefit when you die, but the cash value will return to the insurance company.

Factors that Affect the Current Cash Value of Your Life Insurance

Multiple factors affect the current cash value of your policy.

  • Total of premium payments – The sum of your premium payments depends on how long you’ve had the policy. If you’ve only had the policy a few years, your premium total won’t be significant.
  • Your age when you acquired the policy – According to LIMRA research, 40 percent of life insurance policy owners wish they bought a policy at a younger age. When you’re younger, a large portion of your premium payments will go toward the cash value of your policy. As you age, it costs more for insurers to provide coverage for you, so a large portion of your premium goes toward your policy. For example, if you acquired the insurance at age 50, although you’ve had it for 20 years, most of your premiums are used to insure you, and cash accumulation will be limited.
  • Rate of return on your investment – The growth of the cash value of your life insurance depends on the type of policy, the terms of your insurer, and the rate of return on the investment. Ask your insurance company for a cash value chart to see the projected appreciation rate.
  • Loan balances – If you’ve already borrowed from your insurance policy, an outstanding loan decreases the cash value.

You can gather the data and try to calculate cash accumulation on your own. But it’s easier to sign up for an online account on your insurance company’s website to access the amount. Or you can contact the insurer and request the cash value of your policy.

What Can You Do with the Cash?

As mentioned, cash accumulation is a use-it-or-lose-it feature. As the funds build, some of the ways you can use them include:

  • Increase the death benefit for your survivors
  • Pay the premiums for the policy
  • Borrow money with the understanding that an outstanding loan balance decreases the payout to your beneficiary
  • Make a withdrawal, which might affect the death benefit total
  • Supplement your retirement income

Is a Cash Value Policy Right for You?

If you’re exploring your life insurance options, several factors can help you determine if a cash value policy is right for you and your family.

  • If you’re in a high-income bracket and maxed out of other tax-deferred accounts, a cash value policy is an option for tax-deferred savings.
  • It’s unlikely that cash value will exceed the premiums paid if you surrender the policy within the first ten years.
  • Permanent life insurance costs an average of six to ten times more than term life insurance. But if you choose term insurance, at the end of the term, you’ll need a new policy, or you might be able to convert to a permanent one.
  • Cash value is separate from your death benefit. If you don’t use it, it’s returned to the insurance company.

At Hunt Insurance of Raleigh, NC, we’ll explain your options for permanent life insurance with cash value and how they compare with term life insurance. We will thoroughly answer your questions with easy-to-understand language that helps you make an informed decision. Start the conversation by calling us or completing our contact form.

Does Disability Insurance Have Cash Value? 4 Facts About Getting Some of Your Premium Payments Back

Asian woman wearing white and working on a laptop; for information on whether disability insurance has cash value.

Disability insurance and life insurance have different purposes. Disability insurance supplements your income if you become ill and are unable to work. But life insurance provides benefits to your survivors if you die. Some types of permanent, or whole, life insurance policies build cash value. But what about disability insurance—does it have cash value?

Will Your Disability Insurance Policy Build Cash Value?

Although disability insurance doesn’t build cash value like permanent life insurance, there is a way to get some money back from the long-term disability premiums you’ve paid. You can add a feature—or rider—to your disability income insurance. It’s called the return-of-premium rider.

What Is a Return-of-Premium Rider?

A return-of-premium rider is a feature of long-term disability. When you meet the policy requirements, you’ll receive a percentage of your premiums back—on average, 50 percent. If you add a rider to your disability income insurance policy, you’ll have higher monthly premiums. And if you become disabled and unable to work, your return of premium payments might be affected.

When Will You Receive Return-of-Premium Payments?

Payment schedules vary depending on your insurer, the policy, and the terms of the return-of-premium rider. A rider might include one or more of these features.

  • Milestones – Your insurer has a schedule for returning a percentage of your premiums. For example, the rider on your policy might send you payments every 8, 10, or 20 years.
  • At age 65 or 67 – Some riders only return premium payments when you reach age 65 or 67—when your policy expires.
  • Policy lapse – If your policy lapses, you may qualify to receive a percentage of premiums you have paid up to the date it lapsed.
  • Upon your death – You can designate payments to a beneficiary or your estate.

Is Paying Higher Disability Income Insurance Premiums Worth It to Get Some Cash Back?

A return-of-premium rider can cost two to four times the amount of your base premium. Weigh your decision based on your needs, budget, and the factors below.

  1. Your annual salary – As an example, if your annual salary is $50,000, your yearly disability income insurance payments can range between $1500 and $2000.
  2. Return-of-premium rider – If the annual amount for your payments is between $1500 and $2000, the rider will increase yearly payments to approximately $3000 to $6000.
  3. Milestone payments – The terms of your policy determine when you are refunded a percentage of your premium. And depending on your insurer and policy terms, the payout can be 50 percent or more of your premiums.
  4. Disability income insurance payments – If you receive disability insurance income payments within the milestone, your insurer will subtract the amount of those payments from your return-of-premium payments.

Some consumers weigh the cost, decline the return-of-premium rider, and put the money they would have paid on premiums into a savings account.

Hunt Insurance of Raleigh-Durham, NC, will explain your options for disability income insurance. The only cost is the time you want to spend discussing your concerns. And you’ll get a free quote. Contact us today.