ROP Policy

[agentjhc]

Ok, out of curiosity I looked at a TA policy, $750,000, Female P+, 28....$28.22 regularly, $98.20 with ROP...so, how much do they get back 240x98.20?

 

[WinoBlues]

Ok, out of curiosity I looked at a TA policy, $750,000, Female P+, 28....$28.22 regularly, $98.20 with ROP...so, how much do they get back 240x98.20?

Is it a 20 year?

If yes and depending on riders probably yes. Full Return Of Premium at the end of the term period. Probably about 50% ROP in year 15.

 

[Tahoe Ray]

Ok, out of curiosity I looked at a TA policy, $750,000, Female P+, 28....$28.22 regularly, $98.20 with ROP...so, how much do they get back 240x98.20?

I ran this through Compulife just to check and Assurity came back at 73.48 for the same client...Cincy is at 83.16. (AAA came in second at 76.56)

In some cases, I blend traditional term with ROP. It can satisfy a budgetary requirement, fill the income replacement need and return a significant % of the overall cost at the end of the term.

 

[agentjhc]

Client wasn't interested, I was curious...went with ON 20 years @25.30....dipper husband had to go Pru @55.17 ($600,000)...that was top end of what they could pay..hope to come back and peel off some permanent life in a few years.

 

[WinoBlues]

Client wasn't interested, I was curious...went with ON 20 years @25.30....dipper husband had to go Pru @55.17 ($600,000)...that was top end of what they could pay..hope to come back and peel off some permanent life in a few years.

Good choices. ONL has some good conversion options, hope you wrote the plus.

 

[agentjhc]

I did, I only quote their plus...

 

[hazenyc]

Since ROP carries a net negative Real rate of return (because you lose time value of money for 20- or 30-years, And you lose the opportunity cost to do something else with the money), why not just cough up slightly more (compared to ROP not traditional term) and buy whole life so after your 30 years are up if you don't want the death benefit anymore you can cash it in and make out a positive real rate of return (probably +4.5% ish)

 

[lementex]

Dumb question: Who is ONL?

 

[deadhead]

Dumb question: Who is ONL?

Ohio National Life....................

 

[lementex]

Thanks Deadhead, much appreciated