Insurance providers have a policy to overcome the most common consumer objection to purchasing term life insurance: what If I live? For those consumers who think term life insurance is a waste of money because they may not die, here is something to consider. If you can work a little extra premium into your budget here is a way to avoid the gamble and still protect your loved ones "the real purpose for life insurance" and recieve a cash benefit for staying alive.
What is ROP Return of Premium Insurance?
Return of Premium Insurance (ROP) is just as it sounds. The ROP is a rider attached to a basic term insurance policy that provides a living benefit to the insured. This means that should you outlive your policy term and keep it in force to the end of the level term period, you can receive all of your premiums back in a tax-free lump sum. The policy is similar to term in that it protects your family for a specified time period you select from 10 to 30 years. The ROP premiums are bit more costly than straight term in that the extra 30-40% you pay in premium is reinvested by the carrier and returned to the insured if they outlive the policy.
Critical Ilness Rider
Pays out a portion of the contract to your benificiary should you have a creitical care illness such as Heart, cancer or other life threating disease. Owners can usually access up to 50-70 % of the benefit to help pay medeical or more importantly loss wages and bills while unable to work.
Thursday, January 22, 2009
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