Whole Vs ROP Term Vs Term?

[VolAgent]

Unlike Whole life or UL?

..............

It depends on the product and surrender schedule. I believe ONFS's breakeven point on the Value II is around year 12-14. Their other WLs would be a little earlier. Their UL is probably going to be longer due to the way the surrender charge is structured.

As I recall, Mass Mutual's whole life policies were around year 10-14 on breakeven, again depending on the product chosen as well as age, gender and underwriting class.

 

[WinoBlues]

It depends on the product and surrender schedule. I believe ONFS's breakeven point on the Value II is around year 12-14. Their other WLs would be a little earlier. Their UL is probably going to be longer due to the way the surrender charge is structured.

As I recall, Mass Mutual's whole life policies were around year 10-14 on breakeven, again depending on the product chosen as well as age, gender and underwriting class.

Exactly, not in year 1, 5, 8 or whatever. I took Chuckles comment as there was some special "gotcha" in ROP that was not in some other product. Most products, save term and GUL, have a ROP point. Most do not start year one.

 

[Chuckles21]

Exactly, not in year 1, 5, 8 or whatever. I took Chuckles comment as there was some special "gotcha" in ROP that was not in some other product. Most products, save term and GUL, have a ROP point. Most do not start year one.

Wow, all you guys need to chill out a little. Keatz85 starts a thread saying that he has very little experience selling life and asking for some advice and I gave some information about ROP that he may not have known, being very new to the life side, that could save him a lot of headaches down the line if not explained to a perspective buyer.

I personally do feel that the product is misleading due to most term policies, from my experience, not being held for the whole contract by the consumer for many different reasons.

 

[WinoBlues]

Wow, all you guys need to chill out a little. Keatz85 starts a thread saying that he has very little experience selling life and asking for some advice and I gave some information about ROP that he may not have known, being very new to the life side, that could save him a lot of headaches down the line if not explained to a perspective buyer.

I personally do feel that the product is misleading due to most term policies, from my experience, not being held for the whole contract by the consumer for many different reasons.

I am not excited. I did not mean to imply I was. My point was that the same applies to term, Whole life and UL as well. No fight here.

I have written ROP term for several years. Almost every one is still inforce. I converted/rewrote a couple using the surrender value to buy down the premium on a GUL. My personal persistency on ROP term is higher than straight term. But then again I replace most of my own term. Others experience may be different.

Also, the earlier ROP was much better priced than the current.

 

[Larry Tew]

I don't care for ROP term. Does the average purchaser of this product understand that the returned premium is coming from an overcharge at interest - assuming he holds until the end of the term? Does he understand the forfeiture of a significant portion of his overcharge if he bails early - even in the 15th year of a 20 year term? Does he understand the illiquid nature of his overcharge and apparent decent interest rate?

Some of the ROPs I've seen force the insured to choose between surrender at the end of the term or else forfeit the surrender value if they need to continue the coverage beyond the level period - obviously not the ideal scenario. Do most of them work that way?