Return of premium (ROP) term is going to cost more than your normal straight term, but it is exactly as the name implies. Instead of having nothing to show (except for still being alive!) for it after paying 10, 20, 30, etc. years on normal term insurance, you get your premiums you paid back!
Return of Premium (ROP) life insurance invests your premiums so that you can get some or all of them returned to you in the future. Most ROP policies must be in effect at least half of the term period in order to receive any premiums back if the policy is cancelled. This amount grows until it reaches 100% on the last day of the policy. At that time, a check for the full amount of premiums paid in is sent to the policy owner.
Of course, if death would occur before the term is ended, the death benefit would be paid to the beneficiary, just like with regular Term insurance. Contrary to regular Term insurance, where premiums are higher the longer the term, Return of Premium life insurance premiums are usually lower the longer the term.
Independent Insurance Broker, Quote Me 4Life Insurance, Inland Empire, CA
Term life insurance product that provides a death benefit protection and a return of premium feature. This product is some what different do to the fact that it bridges the gap between low-cost term insurance and permanent insurance.
Return-Of-Premium is aimed right at one of the greatest consumer objections to regular term life insurance: I am probably not going to die and my money will have been wasted.” Whether your goal is ensuring income replacement, debt liquidation, a mortgage, a college fund or in the event of a premature death or protecting your family should something happen to you. Return of premium is a great way to go when purchasing term life insurance.
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Of course, if death would occur before the term is ended, the death benefit would be paid to the beneficiary, just like with regular Term insurance. Contrary to regular Term insurance, where premiums are higher the longer the term, Return of Premium life insurance premiums are usually lower the longer the term.
Return-Of-Premium is aimed right at one of the greatest consumer objections to regular term life insurance: I am probably not going to die and my money will have been wasted.” Whether your goal is ensuring income replacement, debt liquidation, a mortgage, a college fund or in the event of a premature death or protecting your family should something happen to you. Return of premium is a great way to go when purchasing term life insurance.