1. You can most likely find a low risk or risk free investment in a high quality bond or bond fund that will give you a greater return than the ROP term would.

2. If you purchase the regular term then the catch is that you actually have to discipline yourself to still save the additional $50 every month. One advantage to the ROP term is that it forces you to be disciplined and save. Of course you can simply set up an automatic payment from your checking account to your investment account as well.

Either way make sure that you compare quotes and rates from at least 5 different life insurance companies to find the best rate.

Here is some more information ROP term:

1) Most ROP policies have very, very low cash values prior to the end of the term. In other words, you are going to have to pay the premiums the full 30 years or else you will not come even close to the rate of return you are calculating. Most other investments you can get to the money and realize a substantial return without having to wait 30 years. I’m not saying that you can’t do it, but just note the commitment you will be making.

2) Remember that you are not throwing your term insurance premiums away. That $50 per month is providing you protection and security. You are trading a relatively small amount of money per month in exchange for not leaving those who depend on you financially destitute. The only scenario where you would be wasting that $50 is if you didn’t need life insurance in the first place and in that case you would be wasting $50 per month either way.