Return of Premium Term

Return of Premium is a refund.

What is Return of Premium Term Life Insurance?

Return of premium term life is a kind of term life insurance that refunds your paid premiums upon maturity of the term.
If term life insurance is like paying rent or fee for service, return of premium term (ROP term) is like getting your payments back. It’s that simple. Only a handful of life insurers in the market offer this coverage. The only downside is that you are going to pay higher premium for the right to receive a refund. The upside is that you would lose nothing at the end of the term.

How much does return of premium term cost?

Coverage Amount:$500,000
at Preferred Risk
Length of Term: 30
Traditional Term
[Cost]
Traditional Term
[Cost]
Return of Premium
Term
[Cost]
Return of Premium
Term
[Cost]
AGEMALEFEMALEMALEFEMALE
35$34.77$29.21$75.69$59.60
40
$51.16$40.21$119.63$92.22
45$79.12$60.88$187.05$139.20
50$129.39$98.38$312.77$230.12
The maximum number of years available for a return of premium term are 30. Age, health and state limitations apply. All quotes are subject to underwriting.

Click here for a sample PDF illustration of ROP term life insurance.

As you can see the cost involved in buying a return of premium term life insurance is definitely higher than the the traditional term life. So, is it worth it? I think it depends upon your affordability, risk tolerance and individual tax-bracket.

Get real-time Quotes for Life Insurance

Click on the Length of Coverage field and choose the kind of life insurance plan you are looking for. Return of Premium Term plans have ROP in the end.

 

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