What is ROP Full Form in Insurance?
The ROP full form in Insurance is Return of Premium. With the term life insurance, the insured will be covered for a duration of around 10 to 30 years. The insurance scheme offers the beneficiaries the benefit if the insured dies during the term of the policy. The policy will not give the money back if the insured outlives their term. With the help of the ROP rider it is possible to get back the premiums paid for the term insurance policy.
How does the ROP rider work?
When a person buys life insurance, they can add the ROP rider to their policy. During the period of the policy, they will continue to pay the premiums. If the insured outlives the term of the policy, then the insurance company will refund all the premiums to the policyholder and not their nominees.
Advantages of ROP rider:
The ROP rider in term life insurance offers either the maturity or the survival benefit for the insured. If they survive the entire term, they will get the full amount they paid in the premiums back. If the policyholder ends the term plan when it is active, then the insurance company will pay back the surrender value. It also offers tax benefits for the policyholder.