Return of premium life insurance (ROP) is one of the many types of insurance sold by insurance companies to help people during their retirement. Investing in an ROP life insurance is one way to make sure that you, your partner or your children will be secured financially in the future. This is a contract in which you pay the insurance company for premiums and you will receive in return a steady flow of monthly income by the time you retire. If you choose somebody else to benefit from your insurance plan like your spouse or children, they will start getting payments after your death.
But many people still hesitate in investing the money they have worked hard for in an insurance plan. They worry about outliving the policy and they believe in the end that all their money will just go to waste. Most of the insurance policies out there will stop giving out payments once all the money in the account has been paid out. But with an ROP life insurance, you are guaranteed that the entire amount you have paid to the insurance company will be compensated if you ever outlive your policy during your lifetime. And another good news about type of general life insurance is that the money that you collected will be entirely free from income tax since it is purely refund money from all the premiums you have paid the insurance company.
The premiums you will be paying for for the ROP life insurance will cost three times more than the other types of life insurance in the market. But you don’t have to be troubled about losing your money. The money in your account will be invested by the insurance company to make profit and use it to pay you back at the end of the policy.