Term with ROP (Refund Of Premium)

Type of coverage:
Temporary.
Premium and death benefit can be guaranteed for 15, 20, and 30 years, depending on policy.

Premiums will be refunded at the end the term.

Premium:
Guaranteed for the selected period of time but will increase thereafter.
Term insurance with ROP offers a high amount of insurance for your premium.

All premiums paid are refunded at the end of the term, tax-free.

Cash Value:
None.
However, A tax-free refund of all premiums will be paid at the end of the term.

Death Benefit:
Guaranteed for the selected period of time but decreases or lapses thereafter.

Comments:
Term insurance with ROP offers a high amount of death benefit for a low premium.

It is a very popular policy due to the "Refund Of Premium" feature.
It is often used to protect against untimely death (loss of income) and to pay for expenses like raising children, education, mortgage, etc.
It is commonly viewed as a compromise between Universal Life* and Term Life.

* Term with ROP cannot be compared with Universal or Whole life insurance since no cash value is accumulated and the death benefit is only temporary. However, term with ROP will refund all premiums paid at the end of the term.