Who Does
ROP Select-a-Term Help
When they finally found their dream home, Tom and Paula Marsh couldn’t have been happier, but they neglected to consider their mortgage debt. Four years later, they each purchased a 26-year AG ROP Select-a-Term® policy to cover the time remaining on their 30-year mortgage.
When Tom was killed in an auto accident seven years later, the $500,000 death benefit from his life insurance policy was more than enough to pay off the mortgage. Nothing could have eased the emotional strain of losing Tom, but Paula and her daughter could at least rest assured that their family home was protected. And if Paula survives and maintains her policy to the end of her level-premium period, she may surrender the policy for a cash payment equal to the cumulative base premiums paid over those 26 years, which will help to supplement her retirement savings.
The cases presented are not actual and are for illustrative purposes only.
AG ROP Select-a-Term accumulates a cash value that starts no later than the fifth policy year. At the end of the level premium period, the cash value of the in-force policy equals the total of cumulative premiums paid, less any charges for substandard ratings and riders. If the client surrenders the policy, this amount is paid out, minus any outstanding loan balance. The cash surrender value payment does not take into account the time value of money. Alternatively, the same amount may be rolled into a permanent plan of insurance should the insured be eligible for and choose to exercise the conversion option. Coverage may also be continued beyond the level premium period by payment of increasing annual premiums, and the policy will continue to build cash value until the policy anniversary nearest the insured's 95th birthday when the cash value will equal the face amount of the policy. The cash value, minus any outstanding loan balance, will then be distributed as the endowment benefit if the policy is inforce and the insured is then living. The cash value and endowment benefit are subject to all terms and conditions detailed in the policy.
