Return of Premium (ROP)

In the context of Life and Living Benefits Insurance, "Return of Premium (ROP)" is a feature that refunds some percentage of(or all) premiums paid by the policyholder if they outlive the term of the policy or under specific conditions defined in the policy. This feature ensures that the policyholder receives a benefit even if they do not make a claim during the policy term.

Key aspects of Return of Premium (ROP) include:

• Premium Refund: Provides a refund of some percentage of (or all) premiums paid.
• Policy Term: Applicable if the policyholder outlives the policy term or under specified conditions.
• Additional Cost: Often involves higher premiums due to the added benefit.

ROP offers a way for policyholders to recoup their investment in the insurance policy if no claims are made.