A lot of individuals prefer Return of Premium policies. With this type of term life insurance policy, you get all of your premiums back at the end of the term period. Premium is slightly higher than other types of term life insurance. A medical exam is always required in order to qualify for this type of coverage.
Return of premium (ROP) is a type of life Insurance policy that returns the premiums paid for coverage if the insured party survives the policy’s term or includes a portion of the premiums needs to be paid to a beneficiary after the death of the insured person.
When you have a return of premium term life insurance plan you get all the money back that you paid into the plan in premiums over that entire life of the policy. In general, a term insurance policy is going to be more affordable than other options for life insurance coverage. If you need to buy an insurance plan with a return of premium rider, then you’re going to pay more for your plan than a traditional term insurance policy.
You can buy a ROP policy for a 20- or 30-year term. If you die during that time, your beneficiaries receive the death benefit. If you outlive the policy, you get back exactly what you paid in (with no interest).
Benefits of Return of Premium ROP
- Guaranteed Cash Value.
- Guaranteed level term.