What is "Return of Premium Term Life Insurance" and why should I care?

In Life Insurance Selling Magazine, (June 2009) Byron Udell wrote something that I liked. He is explaining to a client how R.O.P. works.

Here is how he explains it.

”Mr. Client, here’s how it works. You set up an account and put $1,000 per year in it. The insurance company also sets up an account and they put $1 million in it. If you die any time during the 30 years, we simply switch accounts. Otherwise, if you're still here at the end of the term, you keep your account: The insurance company writes you a check for $30,000.
Of course, the “account” pays no interest, but in today’s world, a return of your money is a whole lot more important than a return on your money”

So even simply stated, if you don't die during the term of your insurance, the insurance company will return all of your payments. So you are being covered in case tragedy occurs with zero risk.

Don't Procrastinate with Life Insurance

I have a client who quoted both his parents for life insurance back in 2004. At the time, both were healthy and were looking at $250,000-$500,000 policy for the mother, and $750,000-$1,000,000 policy for the dad.

After a few rounds of going back and forth, they abandoned the idea.

In 2006, client's mother died abruptly of cancer.

In 2008, client finally decided to go ahead with the life insurance app for his dad. Declined due to abnormal liver panel. Dad died 6 months later due to extremely aggressive cancer.

This is a fantastic example of why you DON'T PROCRASTINATE with life insurance.