This Will Help on ROP Cases

[Dave020]

I talk with clients everyday that didn't buy or have the R.O.P. rider on their term policies and now their term period is over and they still need some life insurance. Most of them just spent between $15,000 and $50,000 on their term policies. It would have been nice if they would have gotten all of their money back and used it to help bury them and pay off some debit. A lot of my clients never had the option to buy R.O.P. when they bought their coverage. They all tell me they wish they had the option.

I don't think I've heard a better explanation of the value of whole life insurance!

 

[myinsurebiz]

ROP term is still not a good deal for the client.

Why not IF that's what the client wants? True - they could put the difference in another income vehicle - but - they don't.

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”

It takes discipline to "invest the difference". With ROP - all that is diminished and easy for the client.

Can you tell me how many term policies stay on the books for the full 20 or 30 years? Almost every single person with a 20 or 30 year policy will replace it well before it's ready to expire, so unless they keep paying those premiums for the full 20 or 30 years, they get screwed by having to pay twice the price for the first 10-18 or 20-25 years and getting minimal cash value back when they terminate the policy.

Most policies will return a portion of the premiums paid after a number of years . . .

Tom

 

[dgoldenz]

Most policies will return a portion of the premiums paid after a number of years . . .

Tom

Yes, a portion....a very small portion until they get to the last two or three years of the contract. Most people buying ROP should be using the extra money to buy a larger policy or longer guarantee instead.

A 40 year old male in perfect health buying a 20-year ROP $1,000,000 policy would pay approximately $1800-2000 per year. A 40 year old male in perfect health buying a $3,000,000 20-year term policy would pay approximately $1600 per year. Which would you rather have?

 

[xrac]

The same people who claim no withholdings so they can get a big refund back at the end of the year are the same ones who will want to buy ROP. It is the same principle. It is not the smartest thing from an economic/business stand point but it is what some people love to do. They will do it no matter how much you tell them they should do otherwise. After some of you guys explain why they should not do it Mark will sell them the ROP policy.