What is an ROP?

​A HEAD'S UP: 

Sometimes I get asked about the (ROP) which means the "Return of Premium" life insurance policy. Yes, it really does mean all your money back if you live. When they were first introduced years ago they were a shock to people and they would ask if this was "too good to be true"?

​I remember thinking that this was the ultimate (WIN,WIN,WIN) product. Even us agents thought that the insurers went nuts and lost their minds. "You mean I can buy a term policy and if I live through it I GET ALL MY MONEY BACK in a lump sum check"? YES! IT ALWAYS WAS AND IS STILL TRUE! However, the thrill has worn off a bit and only the STRONGEST (A+) of insurers still offer this, one of them is Prudential and they have a very fine product. They are often used primarily in a corporate setting where the employer covers some valuable employees for a period of time and also in divorce and other messy settlements. These are the negatives:

1. The policies are at least TWICE the cost & sometimes more of a regular term policy
2. If you die during the term period you would have ended up dramatically overpaying for the death benefit. 

Food for thought from Agent Randy

Written 04/29/2019

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