| For a long time, I had a poor opinion of return of | | | | profit, etc.). (Since the insurer returns all the |
| premium (ROP) life insurance: whereas the insurer | | | | premiums-or worse, has to pay a death benefit-it |
| refunds all the premiums at the end of the term of | | | | needs to make a lot of money on investments while |
| coverage (if the insured is still alive), it was my | | | | it has the premiums in its possession.) |
| understanding that ROP rates were significantly | | | | Quotes To Compare Return of Premium Life |
| higher than term life insurance rates. That means that | | | | Insurance Rates |
| a lot of the policyholder's money is tied up for a term | | | | Earlier, I alluded that the 300% comparison between |
| of 5-30 years. Wouldn't he or she do better to buy | | | | ROP rates and term rates was not representative as |
| the cheaper insurance and invest the difference | | | | an average. What kept me from discovering that |
| somehow? | | | | fact for myself was drawback number two for ROP |
| Compare ROP Life Insurance with Term Life | | | | insurance: a paucity of instant quotes. |
| Insurance | | | | I've grown slothful in this information age; I admit it. |
| First, an ROP primer for the unfamiliar: Return of | | | | Because online quoters make it so easy to compare |
| premium is a breed of term life insurance, a policy | | | | term insurance rates, I have no trouble investigating |
| which cannot be perpetuated indefinitely but must | | | | that for myself. But return of premium insurance just |
| terminate after a specified duration. | | | | isn't as popular. Not all life insurance carriers provide it. |
| Pro: Compare return of premium insurance to | | | | Consequently, online insurance quote engines cannot |
| ordinary term insurance structurally, and the only | | | | retrieve as many return of premium insurance |
| difference you see is that in the event that the | | | | quotes-or often, none at all. |
| insured survives the entire term of coverage, the | | | | Compare ROP Life Insurance Rates to Term Life |
| owner of an ordinary policy gets nothing, whereas | | | | Insurance Rates |
| the owner of an ROP policy is refunded all of the | | | | This week, I encountered a number of essays which |
| money he spent on the policy. | | | | compare return of premium insurance to term |
| Con: Compare return of premium insurance to | | | | insurance and all cite the difference in price between |
| ordinary term insurance cost-wise, and you find that | | | | 40% and 60% greater for ROP. I wondered at the |
| return of premium insurance rates are notably higher | | | | minimal difference. I ran a quote for myself. The |
| than term insurance rates. How much higher? | | | | online quoter I accessed returned but a single return |
| Although I was later to learn otherwise for myself, | | | | of premium insurance quote, making it impossible to |
| the first comparison I was cited was three times as | | | | instantly compare return of premium insurance rates |
| much for ROP insurance, and when I heard that, I | | | | against each other, but I was able to instantly |
| thought I was done with ROP. | | | | compare ROP insurance against term insurance: my |
| Can ROP Life Insurance Rates Be Too High? | | | | quotes indicated that ROP was 65% more expensive |
| As I suggested in my opening remarks, yes. Tying up | | | | than ordinary term insurance. |
| money for a term of 5-30 years is a significant | | | | While 65% is still a significant price difference, I begin |
| drawback because I can't enjoy interest on that | | | | to wonder if it is not more than offset by the return |
| money. To give you an idea of the significance of | | | | of all my premiums. I must say that return of |
| that interest, reflect that interest on my premiums is | | | | premium insurance is beginning to look more |
| the only source of money for the insurer to meet its | | | | attractive. |
| ROP insurance expenses (death claims, administration, | | | | |