What is ROP Term?
ROP
stands for Return-Of-Premium.
ROP
Term is a newly introduced term
life insurance product that provides a death benefit
protection and a return of premium feature. This product
is revolutionary do to the fact that it bridges the gap
between traditional term insurance and higher cost permanent insurance.
Return-Of-Premium
(ROP Term) is
aimed right at one of the greatest consumer objections to
regular term life insurance: “I am probably not going to
die, and my money will have been wasted." Unlike regular term,
ROP Term
rewards you for living by offering a guaranteed return of
the total cumulative premiums you've paid on the policy at
the end of the level term period.
Example:
Male, 35 preferred plus, 500K 30 year term:
Annual
premium = $810,
Return-of-Premium after 30 years =
$24,300
($810 x 30yr =
$24,300) Income Tax
Free, because the premiums you paid is after tax dollars.
The ROP Term product series
features level-death benefit term plans with fully
guaranteed level premiums for the first 15, 20 or 30
years, with coverage expiring at age 95. Four rate bands
are available: $100,000 – $149,999; $150,000 – $249,999;
$250,000 – $499,999; and $500,000 and higher.
