Dailybeam

Another way to gain mortgage payment protection through insurance besides a term life insurance policy is a ROP (”return of premium”) policy. The trade-off with a ROP policy is that while it would be initially more expensive than term life insurance, it would ultimately provide more savings over time. For example, let’s say you take out a 30 year ROP policy at age 30 to protect your mortgage payment for your family in the event of your premature death. At age 60 if you are still alive and well, all the premiums you paid into the policy will be refunded to you. Think of it as resulting in a tax-free savings plan.