ROP Full Form in Insurance

What is the Full Form of ROP in Insurance?

The ROP Full Form in Insurance is Return Of Premium. This is an optional thing that you can opt for as an add-on while buying term life insurance. When you live beyond the period that the insurance covers, and you’ve been paying your dues faithfully, the people from whom you took your insurance pay you back either a part or the whole of the money you shelled out for the premiums at the duration of the policy.

How Does the ROP Rider Work?

So you get a term life insurance policy, and say, in the policy, you decide to add this Rjson thing. You carry on paying your insurance bills to keep the policy alive. If you manage to get through the policy period, and of course, you will have paid up all that you are required to, then the insurance company hands back to you all the money you may have sent over the years at once.

Tax Implications:

These sums of money from the ROP may not be counted as money you have an income to pay taxes on, at least not until they actually turn out to be more than what you’ve paid in. But, to make sure you get this part right, it’s a good idea to chat with a financial expert.

Benefit in Case of Death:

If a person who has the insurance dies while he is still on, the people to whom he chooses to give the money to will then get the death benefit (beneficiaries), just like any other life insurance.