What is ROP Life Insurance?
Although this is a relatively new type of policy, ROP Life Insurance is making huge waves in the insurance industry. For a number of reasons, it offers a lot of benefits for the premium holders and one of them is being able to return the entire investment after a certain number of years. The way it works is that if you get an insurance plan which you have to pay for in 30 years for example, if you do not die at the end of the term you get everything you paid for in return.
The Features of Return of Premium InsuranceFirst and foremost, do know that the ROP has a higher premium rate than a standard life insurance policy. For example, if you are paying $300 per year for a standard plan you could be paying more than $600 if you were to get an ROP insurance plan. That is the caveat of having a plan in which the rate is much higher if you were to have the entire amount returned to you for an X number of years. In addition, if you cancel an ROP life insurance plan, no amount of money will be returned to you. So if you were to get one, make sure you are in it for the long haul.
Who Should Get an ROP Life Insurance Plan?
It is recommended that younger people who have an above-average income to get an ROP plan if they were ever interested in one. For a period coverage of thirty years, they are better off getting it as opposed to older individuals who have different needs in life. Plus, it would only be to your advantage if you are living a healthy life and not sickly. Otherwise, you are better off with a standard life insurance policy.