Good question. But better yet, do you understand what a Return Of Premium (ROP) Term Life Insurance policy can do for you and how it works.
ROP Term is not new as it’s been around for about a decade and it was all the rage for most of the insurance carriers. But a lot of carriers stopped offering it and only a handful still offer it.
ROP Term is just as its title. It is a Term life insurance policy that depending on the carrier, will offer 20, 25 and 30 years of term life insurance coverage with one big difference. Unlike a regular term life policy that ends after the “term period” with nothing to show for the premiums you paid, a ROP Term Policy will either return to you all of the premiums you paid into it or offer a reduced paid up policy at the end of the term. A reduced paid up policy is simply a life insurance policy that may have had a $100,000.00 death benefit in the beginning but at the end of the policy, the death benefit would be say…..$50,000.00 covering you to age 100 or 121 and you no longer have to make premium payments.
ROP Term is more expensive that a traditional term. More to the 30% + side of paying the premiums compared to a traditional term life policy. But it can be much less than paying for a whole life or universal life policy.
Another benefit to the ROP Term is that if you were to purchase a 20 ROP Term policy at say age 35 to cover your needs, at age 55 you would have the option to either take the premiums you paid get a final expense policy for around $35.00 per month for a $10,000.00 death benefit to cover your final expenses or take the paid up life insurance option to age 100 or age 121 again, depending on the carrier and still have a death benefit in place.
ROP Term Policies are available by taking a medical exam and also without taking a medical exam.
If you have questions or would like to see what a ROP Term policy could do for you, give Fred Wood a call at (877) 215-3812 ext. 0 or email me at fred@fjwoodandassociates.com.