ROP term life insurance offers a refund of all premiums paid if you outlive the policy term. While more expensive than traditional term life, it can be an attractive option for some:
- Premium Refund: If you outlive the policy, you get all premiums back tax-free, making it a low-risk option for those who want the security of life insurance with the chance of recovering their investment.
- Higher Premiums: Expect to pay about 2-3 times more than traditional term life insurance. However, the refund aspect can be appealing for those who want both protection and savings.
- Comparing with Permanent Insurance: ROP term can be a middle ground for people who want a return on their premiums but don’t need the lifelong coverage or cash value benefits of permanent life insurance.
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