Return of Premium Term Life Insurance:

Like traditional term life insurance, Return of Premium Term Life Insurance plans provide valuable and needed protection for your family during your professional career and child rearing days. The question, “What if I have an untimely death?” has long been answered by life insurance in general. However, with more and more of us living to see age 100 than any time in history, perhaps the question should be, “What if I live?”

Unlike traditional term, ROP Term rewards you for living by offering a guaranteed return of your total cumulative premiums at the end of the policy’s term.

What is Return of Premium Term?

ROP Term serves a growing group of people who want the cash values typically associated with permanent insurance, but not the cost of permanent insurance. Simply put, ROP Term can offer you and your loved ones protection for 15, 20 or 30 years and refund all your cumulative premiums at the end of the term period. Your death benefit, should you experience an untimely death within your term of coverage, will be paid in full to your desired beneficiaries.

How does Return of Premium Term work?

If you have ever leased a car, or rented a house, you know that when you return the car or move from your home, all you have are memories. Imagine that the car dealership said to you, “At the end of your lease, we’re going to give you a guaranteed return of all your payments.” Would you have to process that statement for a moment? Or the landlord would say, “You know, by agreeing to lease this home, I’m going to give you two options: (1) at anytime you can opt to buy this property from me and I’ll take all your cumulative payments at that point and turn it into equity for you, or (2), if you finish your term with the lease, I’ll refund to you every penny you put into it.” You would probably have to pick your jaw up off the floor. In principle, these are the mechanics of the Return of Premium concept. At any time during the life of your ROP Term policy, you may exercise the option to convert to a permanent policy to last your lifetime. If your needs in the mature years of life do not demand life insurance coverage, you will receive a tax free return of all you cumulative premiums at the end of the selected term.