Return of Premium Life Insurance ?

Return of premium life insurance is a newly introduced term life insurance policy that provides both death benefit protection and a return of premium insurance feature. Return of premium life insurance is a type of term life insurance policy. Return of premium life insurance, also known as ROP term, combines two features not ordinarily found in a term policy: a set term of insurance and a cash investment return on the policy premiums paid into the plan.

The concept is that the policy returns the premiums you have paid for coverage over that fixed term period if coverage is never used.Return of premium life insurance offers a solution that rewards people for staying alive by giving back the entire amount of premiums paid.

Return of premium solves the biggest complaint about term life insurance, in a neat and simple way. If the policy holder outlives the policy, all of his or her premiums are returned.

How is ROP Life Insurance Different?

There is one main difference between return of premium life insurance and other types of life policies.With ROP term life, at the end of the guaranteed term period, the carrier will refund or return all of the premiums you have paid.the premiums that the consumer pays will be returned to them in one lump sum at the end of the policy, often tax free, assuming the consumer did not die during that term and therefore the insurance company paid out the policy face value to their beneficiary.