What is Return of Premium Term Life Insurance?
How much does return of premium term cost?
| Coverage Amount:$500,000 at Preferred Risk Length of Term: 30 | Return of Premium Term [Monthly Cost] | Return of Premium Term [Monthly Cost] |
|---|---|---|
| AGE | MALE | FEMALE |
| 35 | $75.69 | $59.60 |
| 40 | $119.63 | $92.22 |
| 45 | $187.05 | $139.20 |
| 50 | $312.77 | $230.12 |
Click here for a sample PDF illustration of ROP term life insurance.
As you can see the cost involved in buying a return of premium term life insurance is definitely higher than the the traditional term life. So, is it worth it? I think it depends upon your affordability, risk tolerance and individual tax-bracket.
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Click on the Length of Coverage field and choose the kind of life insurance plan you are looking for. Return of Premium Term plans have ROP in the end.
FREQUENTLY ASKED QUESTIONS (FAQ)
Return of Premium Term (ROP) life insurance is a type of term life insurance that returns the premiums paid by the policyholder at the end of the term if the policyholder does not die during the coverage period.
ROP life insurance works like regular term life insurance, but with the added benefit of a return of premiums feature. If the policyholder outlives the term of the policy, they receive a refund of all the premiums paid.
Whether or not ROP life insurance is worth it depends on your individual needs and financial situation. ROP policies tend to be more expensive than traditional term life insurance policies, but they can be a good option for those who want the added benefit of a refund of premiums.
The cost of ROP life insurance will depend on a number of factors, including your age, health, and the amount of coverage you need. ROP policies tend to be more expensive than traditional term life insurance policies, but they can be a good option for those who want the added benefit of a refund of premiums.
For a reference, please look at the the premium table on this page.
If you cancel your ROP life insurance policy before the end of the term, you may not receive a refund of premiums, or receive partially refund based on for how long your policy was active. However, if you outlive the term of the policy, you will receive a refund of all the premiums paid.
If you outlive your term life insurance policy, the coverage will expire and you will not receive a death benefit payout. Some policies may have the option to renew or convert to a permanent life insurance policy.
When choosing between ROP life insurance and traditional term life insurance, it’s important to consider your individual needs and financial situation. ROP policies tend to be more expensive than traditional term life insurance policies, so you’ll need to weigh the added benefit of a refund of premiums against the higher cost of the policy.