What Return of Premium Life Insurance is
An ROP insurance policy first and foremost is much more expensive than a standard policy. This is due to the fact that a Return of Premium policy guarantees you the return of the entire amount you paid for once the duration of the contract has been completed which is 30 years. After this period, you will be able to get every cent that you paid for.
The Terms and Conditions of ROPWhile the idea of getting everything in return looks promising, 30 years is a long time to make a commitment as opposed to term life insurance. The thing with an ROP is that if you cancel the policy regardless of how long you’ve been paying for it, you won’t see a dime of what you paid for back. That is the deal. In addition to that, the payments are fixed in the sense that they will not increase over time. It’s just that this type of insurance will get you paying for at least 40% more than your standard policy.
Top 10 Insurance Companies That Offer ROP Insurance Policies
- AAA Life Insurance Company. Their term period varies from 15 to 30 years, giving you more options as to which could be better for you.
- American General Life Companies. They offer full benefits for your loved ones in the event of your demise. In addition, the ROP can be used as an income replacement as well.
- Statefarm. They offer you a choice between to 20 or 30 year terms, depending on which you are more comfortable with.
- Prudential – Prulife. You can secure a loan with this insurance policy and you do not have to pay anything back. The amount will be subtracted from the money you will receive.
- ING. This company allows you to have riders in your Return of Premium insurance policy, provided you are willing to pay for the additional costs.
- Futurity First. The company offers straight-to-the-point and uncomplicated ROP insurance plans.
- Cincinnati Insurance Companies. They offer affordable and flexible insurance protection that will suit your needs and requirements.
- Vantis Life. They guarantee that they will return the lump sum to you if you outlive your policy and it is tax-free.
- Katz Insurance Group. This company offers a competitive rate when it comes to their Return of Premium insurance plans.
- FS Insurance. A good insurance company that also offers ROP insurance with a lock in period of a maximum of 30 years.