What is Return of Premium Term Life Insurance?
Return of Premium Term Life Insurance?
Return of premium (ROP) life insurance is a type of life insurance or policy rider that pays you back your insurance premiums if you outlive the policy, as long as certain conditions are met.
ROP life insurance is typically structured as a term life insurance policy, meaning you pick a period of time, such as 10, 20 or 30 years, for which you want to lock in your rate and coverage. Once the term of your ROP life insurance ends, coverage expires, and your insurer will issue you payment for the premiums you put toward the policy. Then you can either renew the policy or purchase a new one.