Who is Dropping ROP ?

[Mark]

A lot of changes are coming Jan 1st to ROP. A lot of companies will be raising their prices by over 30% to 50%.

I know a lot of companies are even pulling out of the ROP market and dropping the product.

Which companies do you know of that are losing their ROP product?

 

[Bitnis]

American National

 

[Robert Barney]

For most companies dropping ROP, the situation is likely to be temporary. They will be back with product, but at much higher premiums.

Right now there is a race to get products designed and filed with the states, and to get the state approval process completed in time for January 1st.

 

[Lyn]

For most companies dropping ROP, the situation is likely to be temporary. They will be back with product, but at much higher premiums.

Right now there is a race to get products designed and filed with the states, and to get the state approval process completed in time for January 1st.

What is ROP?

 

[somarco]

Return Of Premium

 

[Mark]

I'm seeing a lot of companies go up 20% to 50% and see a few that are not going up any.

I think the playing field is fixing to change a lot.

 

[BNTRS]

I remember when a friend of mine called me when NY finally approved ROP and his company had a product. He was all excited and called to ask if we had done any business with ROP. I said yeah, only we use an ROP product that gives you the premium back plus interest, you might have heard of it once or twice, not really a brand new thing...it's called Whole Life Insurance.

 

[briko3]

And the good thing about using permanent insurance is that if you want to get rid of the policy early or exchange for something else, you can have access to your built up cash.

 

[Robert Barney]

And perhaps you guys would be interested in giving us some example using premiums and cash values compared to an ROP product with the same face amount.

 

[bhoward]

And the good thing about using permanent insurance is that if you want to get rid of the policy early or exchange for something else, you can have access to your built up cash.

If you look at the schedules, ROP can do the same thing. If you leave early, you get cash back at a vested schedule. You can also roll over the ROP into a fully paid up policy.