Return of Premium (ROP) is another type of term life insurance to consider. Unlike the aforementioned product, return of premium term life insurance gives back to policyholders the amount of premiums paid at the end of the policy term, minus any administrative charges, fees, or other costs. In most types of term life insurance, if an insured has not filed a claim by the time the policy term expires, there is no refund of monthly premiums paid during the term.
Monthly premiums for return of premium insurance policies are often significantly higher than for policies without the repayment feature and generally, insured parties are required to keep the policy in force to the end of the term or forfeit the return of premium benefit.
ROP offers these benefits:

  • Solid coverage for the term you select (15, 20, or 30 years).
  • A fixed monthly premium that does not change during the selected period, even as you get older or if your health declines.
  • Full benefits to your loved ones if you should die.
  • Can return an amount equal to the premiums you paid when the level premium period ends, if you are still living and you’ve kept the policy in force.

Whatever your goal, Return of premium (ROP) term life insurance offers you the best of both worlds – your loved ones will receive the full death benefit if something were to happen to you AND it can return the amount you paid in premiums if you live until the end of the level premium period and you’ve kepy your policy in force.