ROP Term Insurance - is that a good idea?

[jlcl]

What is the name of your state? California

Does it make sense for a 30 year old to have a 20 yr term return on premium (ROP) insurance or should the 30 year old get a term only insurance with no ROP or a universal life insurance?

 

[moburkes]

The answer will be different for each person. You have start with a few things.
How much $ would your family need if you died tomorrow? Enough to bury you and pay off some debts? Enough to pay a mortgage, so your family can live without your income? Are there day care expenses, medical expenses for you or family members? Etc.

What can you afford, each and every month, even if you lose your job or become disabled?


The answer to those questions will determine what you will buy.

ROP isn't bad. Obviously its more expensive than regular term alone. Its a risk. Its not much more expensive, but it is still more expensive.


UL isn't bad, unless you're not prepared for higher premiums at some point during the policy term.

My suggestion is to start with what you can afford, and see how much insurance it will buy for each of the policies that you're looking at. Go from there.

Do NOT buy insurance if you won't be able to make the premiums.

 

[Betty]

Since each person's ins. needs are different, you might want to talk to an ins. agt. or broker. They can help you decide on the best plan & amt. for you based on your circumstances & income.

moburkes gave you some very good info.