Return of Premium Life Insurance also referred to as ROP rider/ROP insurance simply means that an insured gets a tax-free return on all the paid premiums after the expiry of their life insurance policy provided they are still alive. For instance, if you paid $100 per month for 10 years, you’ll get $12,000 premiums returned to you stress-free. For maximum benefits from ROP insurance, it’s wise to work with a dependable and honest insurance agent.
Benefits of ROD rider
Unlike the more expensive permanent life insurance, ROP insurance is relatively less costly. Its affordability makes it ideal for low-income earners. Despite its inexpensiveness, the insured’s family reaps optimal benefits provided death occurs while the policy is still valid.
Guaranteed Return of premium
Should an insured outlive the policy, he/she is guaranteed a 100% tax-free return of the investment. At the end of the term, an insured can also decide to use the accumulated cash returns to invest in permanent life insurance. With this kind of coverage, you can afford to smile knowing that you are well covered and you’ll not lose a penny of your investment when the right time comes knocking.
Like other life insurance policies, the primary objective of investing in such coverage is to ensure that your beneficiaries are financially empowered when you die unexpectedly. We recommend that you clearly understand all the terms and conditions of your return of premium life insurance policy to avert complications in the future.
Your income flow may be slow but still manage to purchase ROP rider policy which is wise enough. The advantage of buying this kind of plan is that it exonerates you from the usual mind-boggling life insurance coverage underwritings if you want to convert it into a permanent life insurance policy later.
Automatic Premium Loan
If you insure with the right insurance company in Tucson, Arizona, you will have access to automatic premium loans when your pockets are running dry. We all experience financial challenges at some point in our lives. Assuming that happens, a reputable life insurance company will avail an automatic loan to ensure that your premiums are up to date thus keeping your policy valid 100%.
Tax-free premiums returns
Your local government authorities will always tax almost everything except your ROP insurance premium returns. Outliving your ROP rider policy doesn’t necessarily mean your pockets will suffer unnecessarily, your life insurance company will give you 100% tax-free premium returns at the expiry of the term.
Free Return of Premium Life Insurance Quotes
Are you in Tucson, Arizona? Get in touch with Global Investment Strategies for an absolutely free return of premium life insurance quotes.