Whatever Happened to ROP Term??

[Mark]

Whatever happened to ROP term?


I am still a big fan of R.O.P. Most of my clients that buy a new home, end up wanting R.O.P. when I show them all the options. Prices did go up on R.O.P. but there is still a high demand for it with younger clients.

I wanted to share this link with you.

 

[YouGotMyMoney]

I am still a big fan of R.O.P. Most of my clients that buy a new home, end up wanting R.O.P. when I show them all the options.

Is that because you want to sell them the ROP rider, or do they bring it up?

 

[Mark]

Is that because you want to sell them the ROP rider, or do they bring it up?

I show them all the options and all the riders...


I'm a big fan of R.O.P.

 

[MisterRandyWatson]

Once upon a time, I thought ROP nonmed term was a good thing to sell to young people with new mortgages. Currently, I make approximately $5.12 per month on all that work I did.

I'm completely open to the possibility that I was doing it way wrong, but I can't say I get too fired up when I ponder the nonmed ROP mortgage term market.

 

[Larry Tew]

ROP is the insurance company's friend. Even with the changes in the rider in the past year or so, the lack of access and slow growth just don't do it for me.

 

[VolAgent]

ROP is the insurance company's friend. Even with the changes in the rider in the past year or so, the lack of access and slow growth just don't do it for me.

In my opinion, it is a sucker's bet. What percentage of term policies get replaced before they hit year 7? Half, more? Even with the changes to ROP, it is still a huge win for the company.

 

[2112Greg]

Bingo. Most term policies never come anywhere close to the original term. And the return builds so slowly and costs so much, I've never been able to justify it to myself or a client.

 

[VolAgent]

Honestly, term insurance is so cheap, why do you need the money back? If money is that tight, you definitely don't need to be overpaying for a ROP rider.

 

[AllenChicago]

One of my clients had a TransAmerica ROP Term policy lapse after 4 years. He reinstated it a couple of months later but the company wouldn't allow the ROP to be re-added. His premium was lower, but the money he paid for the rider was down the drain.

If priced right, ROP can give you the advantage in a competitive situation, but the plans will (likely) never last the full 20 or 30 year term. I suppose you can't get ROP with a 10 year term because there's a better chance that the premium might actually have to be refunded?

-Allen

 

[jdeasy]

I never thought it was a good deal for clients. The only ones I did sell was for younger folks where it only added $2 or $3 mo. to the premium.

It always seemed like a sucker bet and I didn't want to offer sucker bets.