ROP or RETURN OF PREMIUM LIFE INSURANCE

• Return of Premium Life Insurance is a term life insurance policy with an extra rider (option) added to it. The ROP (Return of Premium) rider costs extra, but makes a life insurance policy more valuable. If the policy holder survives the term of the policy, they will receive a specified portion (often 100%) of their premiums back. For instance, $50 in premiums over 30 years, means you get a check back for $18,000! Of course, if the policy holder does not survive the term of the policy, their heirs would receive the full death benefit.

• You may have been contacted about  Mortgage Life Insurance if you bought a home recently. Again, mortgage life insurance is simply a term life insurance policy. Sometimes the insurance company will simplify the underwriting if a home has been purchased recently. When you speak with an agent about Mortgage Life Insurance, they will usually offer you a Return of Premium Rider.