Posts Tagged ‘term life insurance’

Return of Premium Life Insurance (ROP Insurance)

You have probably heard of ROP or Return of Premium whenever life insurance is being talked about.

But what is return of premium life insurance? The ROP insurance is an additional incentive on some term life insurance policies. It acts like a money-back guarantee. If the insured passes away during the covered period, then the beneficiaries get a lump sum. However, if the insured does not die after the payment, the he lives to get back all the premiums he paid.

This benefit was added in order to counteract the notions of people that they will just waste their money because they are not going to die during the term.

Now, some people get the Term Life Insurance because it is relatively cheap and easy to comprehend, as compared to the whole life insurance. While you are paying, you are covered and your family will be benefited in case something happens to you. However, if you outlive your policy, you get nothing.

With the ROP, however, you have the assurance that if you outlive your policy, you will get something–like forced savings.

This is a reading that I got from the internet about Return of Premium Life Insurance.

Return of Premium (ROP) Term is an elegant and effective new solution that splits the problem up the middle. It starts out like Term Life Insurance with one extra promise from the insurer: If you pay your premiums and you live, we’ll give you your money back. On a typical 20 year Level Term Life Insurance policy the ROP feature could cost about 30% more, but that extra premium will effectively earn you a 6-7% return over the 20 years -– just enough to earn you back everything you’ve paid in. What’s in it for the carrier? LOYALTY. Carriers spend a lot of money to get your policy, and only start making a profit if you stick around more than five years or so. ROP guarantees that lots of customers stay for the full 20. And, for those that don’t, the carrier made an extra 30% on those guys -– and used some of it to pay you a solid return on your money. So if you know that you are going to be insured for the long haul, then think about tossing in a few extra dollars and getting it all back in the end.

Benefits of No Exam Life Insurance

Now you know what a no exam life insurance is, you may ask, what are its benefits? Why is it better than other kinds of life insurance?

Depending on your age and your medical history, the no exam life insurance could be beneficial for you. Just look below where your circumstance falls. If you agree to any of the reasons below, then this kind of insurance just might be good for you.

1. Good for those who are already older. Life insurance becomes more expensive and also more difficult to get if you grow older. That is because as one grows older, you may be facing health issues and you will also have a shorter time to pay for your premiums. So senior citizens or older individuals who have never had life insurance or whose term life insurance coverage have expired may opt for this kind.

2. Pre-existing medical conditions are overlooked. For regular policies, you would have to go through a medical exam. If you have a medical condition or your family has a history of medical conditions, then you will have to pay a higher premium. But that is not so with the no exam life insurance. No matter what you have, you still get covered, even if your condition would get you rejected in other policies.

3. To save time. There are people who do not want to go to different doctors and undergo a physical checkup. Or they do not want to be poked around because they would feel violated. Or they do not want to wait in queue in order to be served in laboratories. In a no exam life insurance, all that you need to do is to fill up a form, submit it, and then start paying.

The main disadvantage of a no exam life insurance is that its premiums are more expensive than other kinds. That is because the company will have a lot of stake in insuring you when they do not know your background. Nevertheless, many people still believe that this kind is worth investing in.

What is No Exam Life Insurance?

There are insurance companies that give an exam for those applying for life insurance. That is because they want to determine how risky a person you are. If you are what they call a “bad risk”, your insurance premiums could be higher or worse, they will totally reject your application.

Now, you have to know that there many types of life insurance now available. One of them is called the no exam life insurance. This just means that you do not need to undergo any kind of medical examination in order for your policy to be approved. No need to go to a doctor for a physical checkup or lining up in laboratories for some tests. You do not have to go through answering questions about your and your family’s medical history.

If you are interested in the no exam life insurance, then set an appointment with an insurance agent from any reputable company so that this can be further explained to you. This would be beneficial for you if you or your immediate family members have histories of dreaded diseases.