Most are aware that life insurance is essential to protecting oneself and family against financial loss. BUT some really don't like the idea of making premium payments for 10, 20, or 30 years toward a term life policy and there is never a payout. A person can feel like they put money into a policy for years and once the term is over with have "nothing" to show for it.
Fortunately, one type of life insurance policy takes that possibility right off the table. Return of premium (ROP) term life insurance refunds all of the premiums you’ve paid if you’re still alive when the policy term is over.
With a typical , you pay regular premiums during the time your coverage is in force. If you die during that time, your receive a life insurance payout known as the death benefit. If you’re still alive when the level term period is over and you haven’t renewed the policy, there’s no payout.
ROP life insurance allows you to get those monthly premiums back if you’re still living at the end of the policy period. ROP life insurance can be purchased already integrated into a policy or added as a rider to a regular term life insurance policy, and it’s usually more expensive. If you outlive your coverage, 100% of the money you paid in premiums during the term is returned to you, tax-free. However, if you fail to make your payments or cancel the policy, you may not get a premium refund (exact rules vary by insurer).
Despite a higher cost, there are some benefits to ROP term life insurance:
With the best return of premium life insurance companies, you get a guaranteed amount of money back down the line that could go to your loved ones, rather than taking risks in the stock market.
Click HERE to book your free consultation on setting up your own Return Of Premium life insurance policy.
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