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 low-cost term insurance and 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." With
ROP Term you do
not have to waste your money. Unlike regular term, ROP Term
rewards you for living by offering a guaranteed return of
your total cumulative premium paid on the policy during
the level term period, not including substandard and rider
charges, if any, will be paid to the policy owner at the
end of the level term period if the policy is then in
force.
Example:
Male, 35 preferred plus, 500K 30 year term:
Annual
premium = $810,
Reeturn 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.
