Return Of Premium....???

Jul 23, 2008

  1. TonyC
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    Forgive a newby question...

    Looking for a CI/Disability policy that gives a return of premium.

    I was conversing with an agent who said there were products available that offer the following....with a return of premium...if not used.

    Unfortunately...i didn't get a company name.

    Anyone know of such a product?

    ~T
     
    TonyC, Jul 23, 2008
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  2. 2112Greg
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    Illinois Mutual is your company for this.

    Generally, though, RoP prices out and despite our best efforts, clients don't always keep these types of policies to the point where the increased costs due to RoP are justifiable/justified.

    I know with life insurance, often the RoP plans are 4-5 times as much as a standard term policy. Most often I will counsel that these premiums are just an expense (and tax deduction) and should be viewed as such. If they are prepared for the increased cost of RoP, all the better, but often, in my experience, it doesn't make sense.
     
    2112Greg, Jul 23, 2008
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  3. Winter_123
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    The concerns are all valid but the 4 to 5 times piece is wayyyyyyyyy on the high side for a 30 year policy. The shorter the term, the steeper the additional cost for rop.

    Winter
     
  4. 2112Greg
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    Actually, I should have said 3-4 times...not 4-5. Not much of a difference, really, but it makes a difference in the premium to have a longer term, obviously. I guess in thinking back to the RoP quotes I've made, they may have been shorter terms, but I will always ask if they might be interested in a RoP policy...and the general response is they are prepared to write the cost off, take the security of knowing they are covered, take the tax advantages and just go with non-RoP term.

    Your mileage may vary...

    But one thing, Winter...that avatar of yours is going to give me f'ing NIGHTMARES!


    lol
     
    2112Greg, Jul 23, 2008
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  5. Winter_123
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    Alright. Not to beat this to death but just in case newbies are listening in, an ROP policy for 30yrs with a carrier such as Genworth would be about 75% more than regular term.
    As discussed, it gets wacky with shorter terms.

    That avatar will be in our dreams for sure.

    Winter
     
  6. bill3173
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    Assurity Life offers DI and CI with a ROP rider, and it is not ridiculously priced. It is not offered in every state.
     
    bill3173, Jul 24, 2008
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  7. bill3173
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    I know from your posts, that you know your stuff, but I regularly write AIG for ROP and it is the most competitively priced ROP that I've found. I recently placed a 54 yr. Female in good health in a 20 yr. ROP and the premium was about 40% higher. I have little doubt that she willl keep it. She was replacing an expiring term that she kept for 15 years.
     
    bill3173, Jul 24, 2008
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  8. arnguy
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    Hey Bill, Golddoor who used to be on here used an avatar similar to yours. Wait until Al (a/k/a Jackass) sees it. He complained about Golddoor's hurting his eyes. I concurred.:unsure:
     
    Last edited: Jul 24, 2008
    arnguy, Jul 24, 2008
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  9. bill3173
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    Just did it for a joke. I read some of those ridiculously volatile archived posts exchanged between him and Som and Moon.
     
    bill3173, Jul 24, 2008
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  10. JMO Fan
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    Return Of Premium DI

    I worked for a carrier that sold 10-yr ROP DI. They charged too little. High persistency killed the co. :swoon:
     
    Last edited: Jul 24, 2008
    JMO Fan, Jul 24, 2008
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