April 17th
Return of Premium Life Insurance (ROP Term)
ROP term or Return of premium life insurance is comparatively a newer term life insurance. This newer term life insurance provides in one hand death benefit protection to the policyholder and on the other hand it provide return of premium insurance. When we decide to buy one term insurance, we never meant that we would die within the term; as result in many occasions we restrain from buying term insurance policy. We think if we buy such policies the money we put there simply
will get wasted. This is the reason the insurance companies have devised new policy like ROP term. Now question arises, how the insurance companies offer such return of premium?
Now let us discuss how the insurance companies work in this regard. Suppose as a customer you buy a term policy for a period of 15 or 20 years. The company, which has issued the policy, returns the premiums, which you earlier paid to the company. There is also a provision of partial return of premium. If you have decided to buy term life insurance, you should not waste your money. You can put your money in buying such policies, which has the both the provision of term life coverage and return of premium.
Return of premium term life insurance polices has guarantee of return of premium that the buyer of the policy had paid earlier. Now let us cite an example. If a male of 35 years preferred to buy a policy of $500,000 for a period of 30 years and he has to pay $810 as the annual premium. This yearly premium for 30 years together comes together $24,300. After the term, the policyholder will get this amount as return of premium. Such policies are exempted from the income tax. If you are thinking of buying such policies you can avail the online quotes of different insurance companies.