ROP Life Insurance Riders (Return of Premium)

Advantages of Term Life Insurance

Lower insurance rates are a big advantage of term life insurance policies. Of course, consumers should be advised to enjoy the lower premiums over permanent policies, and to use some or all of the difference to fund savings and investments which will provide better returns on their money.

But not passing away during the term of our life insurance contract, while desirable, means that all premiums are lost. If you survive the 20 or 30 years of your policy, enjoy being alive, but understand that all of your premiums are gone, along with your coverage. And after that time has passed, you will be older and perhaps, harder to insure.

Rop Life Insurance

You can find term life insurance with a rider (option) called ROP (Return of Premium). A ROP life insurance rider costs a bit extra,  but it means you can get all of your premiums refunded if you survive your policy and never collect the death benefit. When you think about paying $50 a month for 20 years, and when you realize that meant you had written checks for $12,000, it is not hard to see the advantage of getting a large check back from the insurer!

In fact that $12,000 might just be the perfect amount to either put aside in an annuity to self-insure for final expenses, to fund a small face value permanent life insurance policy, or perhaps to just put down on a sports car to celebrate your mid life crisis. You get a cash payment, and you can use the money to benefit yourself, according to your own wants and needs at the time.

– Posted in:

Health Insurance

– Tags:

life insurance, mortgage life, rop, term life

– Bookmark:

Digg del.icio.us Reddit StumbleUpon