re: Wife pregnant for first time...

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What do you mean here?

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ROP is a rider you can purchase where you pay a little extra and if you don't cash in on the benefit during your term life insurance, the insurance company refunds all the premiums you paid over the lifetime of the policy. I promise you, it sounds a heck of a lot better deal than it is. For the extremely conservative it is a good deal. Someone on the sales side could tell you if that rider is even an option in your state (certain states require certain riders be available)



Long term insurance products that have projected benefit payouts in the more distant future do not make money on premiums alone. Simply put, when an insurance company collects premiums they split the premium into reserves and investments. The reserves are state mandated to protect against catastrophic loss. The other portion of the premium goes into investment. Insurance companies are betting that by the time they pay out your benefit or return the premium, they can invest your premium and earn a return that outpaces both inflation and your benefit amount (whter return of premium or payout). That benefit amount is the average of their pooled of insured not "you individually"