What is ROP?
A Return of Premium (ROP) rider is an added benefit you can choose to put on some term life insurance policies. Normally you purchase a term policy to last for a specified amount of time. This could be 10, 20, or 30 years, or it could be some other length of time. Once the policy is over, if you have survived it, you just have an expired contract. You can count yourself lucky because you are still alive, but as far as your policy goes, you have nothing left from it.
ROP riders change this. It costs a little bit more but will refund all of your premiums if you survive your policy. So if nothing was collected from the life insurance, and you kept your policy in force for the entire length, you get your money back! That is why Return of Premium Term Life Insurance has become more popular lately.
How Does ROP Term Life Work?
Look at an example. Let us say that a 20 year term policy will cost a man $25 a month for $100,000 worth of coverage. At the end of the time, with no ROP, that man would have spent $6,000. He counts himself lucky because he survived the 20 years, but he has no value left in his policy.
But let us say that man choose to spend an extra $5 a month for the return of premium rider. So over 20 years, he spent $7,200 instead of $6,000. But now, at the end of 20 years, the insured person would get a check back for the whole amount! Instead of just having spent $6,000 for 20 years of pure coverage, he spent $7,200. But now, as the policy contract ends, this man will get a check in the mail for $7,200.
Is this the right choice for you? Everybody has different needs, but this is a popular choice for many people. Before you buy, you should do a life insurance comparison so you understand the advantages and disadvantages of the different types of policies.
We can help most people find no medical exam term life insurance too.
Related posts:
- Too Old For Term Life Insurance? Do you think that older people have outgrown their need...
- Why Compare Term Life Insurance Quotes Online Term Life Insurance Quotes Are Not The Same We researched...
- Define Term Life Insurance Policies What is Term Life Insurance? Do you understand term life...
- Can Older People Still Qualify For Term Life? When most of us consider life insurance for seniors, we...
- Life Insurance: Policy to secure the future of your loved ones When you have loved ones and when you want to...
Related posts brought to you by Yet Another Related Posts Plugin.
Feedback