First of all, you need to confirm that an ROP Rider is available for the specific type of insurance you are interested in.
As I mentioned, 2 common types of insurance plans that offer ROP are Disability Income Plans and Term Life Insurance.
1. Get a Quote both with and then without an ROP Rider.
2. Calculate the monthly and annual differences between the two.
3. Can you afford the higher premium, with ROP ?
If yes, then proceed to #4 here.
If not, you are done and have just answered your
own question.
4. Take a Good Look at the specific requirements and amount of Return.
For Example: Here is an easy one: Term Life Insurance:
You obtain a 20 year Term Life Insurance Plan.
You annual premium with ROP is $1,200.
(Lets just say that this is a $250,000 policy, and that your age is 45.
Healthy Non-Smoker: Preferred Rate)
At the end of this policy, 20 years later, you are healthy, alive, and have paid all of your premiums. ( The policy has gone to term.)
You would have paid in $1,200 x 20 = $24,000.
Guess What ? You will be receiving a Return of $24,000.
In addition, do not forget that you received 20 years of protection, even though
no life claim was paid.
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Some people like to take this a step further, and compare this to a comparable investment. Please remember that you are NOT comparing apples to apples here.
You can take the difference between a Non ROP Policy & the ROP Policy, and do a financial analysis, but REMEMBER: You have had 20 years of coverage, that would have paid out $250,000 in the event of your death.
For More Information on ROP: Visit: http://cashbonuses.9f.com
