Return of Premium (ROP) life insurance policies allow you many options you won’t find with traditional term life insurance policies. Although term life insurance is considered the lowest cost life insurance, many consumers are not comfortable spending the money because they could outlive the coverage.
With a ROP life insurance policy, you can provide solid life insurance protection for your family with a guaranteed death benefit that gives you something tangible back the return of all eligible premiums paid when the level term period is up.
Why is this important?
Affordable guaranteed level premiums for 20 or 30 years allow you to budget the cost of ROP life insurance protection without worry of a premium increase.
Builds cash value
Accumulates valuable cash values for future cash needs such as helping fund a child’s college education, paying off your mortgage early, funding a business opportunity or supplementing retirement income.
Life insurance death proceeds are paid out income-tax free and
the ROP policy’s return of premium benefit is paid out income-tax free, an important feature when you consider how taxation can have an adverse effect on your savings growth potential.
Favorable loan feature
The ability to access the ROP policy’s cash value, tax-free, through policy loans allows you to use the cash values to help pay premiums or any unexpected expenses that may arise. (Loan balances will reduce the cash value and death benefit.)
Should future circumstances require a more permanent life insurance need, the ROP insurance may be converted to a permanent life insurance policy, guaranteed, without proof of insurability.
The ROP policy provides other choices in lieu of the return of premium cash benefit. ROP policy non-forfeiture provisions allow you to continue life insurance coverage without any further premium outlay required.
The option to design the ROP policy that reflects your particular needs and situation.