Return of Premium Life Insurance

When you purchase a level term insurance policy, your family receives the death benefit if you die during the term period. Chances are, however, that you will outlive the term period. If your term insurance policy includes a return of premium feature and you outlive the term period, the insurance company will then return to you all of the premiums you have paid for the term insurance protection.

Return of premium term insurance (also called "ROP term") enables you to hedge your bets. If something does happen to you, you have provided for your loved ones. If you outlive the policy, the premiums that you have paid will be returned to you.

A return of premium term insurance policy costs more than a traditional level term insurance policy, so it’s important that you understand the conditions under which premiums will be returned to you.

All return of premium term insurance policies return 100% of the premiums you’ve paid at the end of the term period, assuming the policy is in-force and no death benefit has been paid. If, however, you cancel the policy prior to the end of the term period, you may receive back none or only a percentage of the premiums you’ve paid. Check the return of premium conditions before you purchase a return of premium term insurance policy.

To request additional information about return of premium term insurance policies, please contact us.