Term Life Insurance (ROP) Return of Premium

Return of Premium (ROP) (Term insurance) is a type of life insurance policy that provides coverage for a certain period of time such as 10, 15, 20, or 30 years. Many policies offer level premiums for the duration of the policy (Your monthly payment will never increase as long as you continue making the payment).  

Your premium will be calculated based on your age, gender, health, and if you participate in any hazardous hobbies.

If the insured dies during the time period specified in the policy and the policy is active, or in force, a death benefit will be paid depending on the amount insured ($100,000-$1,000,000).

With the Return of Premium option: If the policyholder outlives the term, 50% or 100% (depending on the initial plan selected by the client) of the premiums paid over the course of the policy are refunded tax-free to the policyholder at the end of the term.

Purchasing Return of Premium Life Insurance forces, the policyholder to save for their future, including the return of premium benefit is paid in a lump-sum payment that is a tax-free benefit.

Furthermore, the policyholder was needing Life insurance in place to begin with many years ago. Now he/she has money being paid back to them from the Insurance Company.

Return of Premium; Term insurance is more costly than Term insurance initially, but much less expensive when compared to Permanent (Whole) Life insurance.

Additionally, many Insurance carriers, but not all, now offer policies with Living Benefits.           

Ideal age of Policy holders: 18-75 years old.