30 Yr Level Term w/ Return of Premium

Not really, agree on this one, for the most part ROP is use on suckers.

Ps, not saying I wouldn't sell one demands it! Yet, I can not really remember someone demanding this product?


Actually, I have had quite a few people demand it. Not boatloads, but quite a few and with full disclosure and a knowledgeable consumer it can be suitable.

Winter
 
Holy cow batman, that makes absolutely no sense. Must not be a financial guy. Imagine the conversation with the client.....But then, if it's a 30 year mortgage and a 30 year ROP term policy, yeah! It DOES make sense!

JK
 
Holy cow batman, that makes absolutely no sense. Must not be a financial guy. Imagine the conversation with the client.....But then, if it's a 30 year mortgage and a 30 year ROP term policy, yeah! It DOES make sense!

JK

Yea, I seen that idea promoted by more then one FMO! With 30 years I think the return is around 5.7% on average or something close to that. So it beats a CD and most Annuities, if they keep the Term for the entire period! Which is what I do agree with Somarco about, vast majority will not.
 
For the early mortgage pay down using an ROP, a 20-year ROP is used. Theoretically, at the end of 20 years they use the money to pay a lump sum on the mortgage. There are certainly better tools to use for that, but this one works too. Plus they have the advantage of a death benefit, although an expensive one.
 
. Plus they have the advantage of a death benefit, although an expensive one.


More costly yes but it is all relative. If someone is going with a non-med shlock mortage policy such as from old mutual or foresters and you put the client into, for example, genworth ROP, it will still be cheaper than the mortgage plan plus they will get the return if they hold on to it. Dont even talk about ROP mortgage non-med plans. 30 year ROP really isnt that much more from a competitive carrier. It might be 20% more or so but another carrier might be 20% more even without the ROP feature just because their rates stink. Bottom line, if you go with non-competitive company it gets even worse if you go with ROP. With a highly competitive carrier, a 30 year ROP is not that much more. 15 and 20 year is very steep. I have had clients where the more expensive their policy is the more interested in ROP they are and then others go the other direction.

Winter
 
I read somewhere that claim rates on ALL term products were less than 1% nationwide? ROP claim rates must be drastically lower?

As soon as they come out with a 1 year ROP, guaranteed renewable of course - I am all over it.
 
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