Dec 28
What is return of premium life insurance?
Return of premium life insurance policies are the kind of term life policy that provides all of your money back at the end of the term if you don’t die. We’re seeing more and more consumers buying this type of policy.
And now, there’s a new generation of ROPs with accelerated cash surrender values that give consumers access to the cash value through policy loans after the 4th year. As with the first generation of ROP life insurance policies, you’ll pay a bit more for an ROP policy but if you outlive your policy, you’ll get all of your money back at the end of the term, tax-free.
Return of premium life insurance is a little more expensive then regular term life insurance policies, but some say they’re worth it because it’s a forced savings.
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