Return of Premium
Return of premium term life is a kind of term life insurance that refunds your paid premiums upon maturity of the term.

What is Return of Premium Term Life Insurance?

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?

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

This 30-year refund of premium illustration shows exactly how the plan works. You also have the conversion privilege to switch your term life into a permanent plan until age 70. Restrictions apply. Just remember, this is not a cash-value policy. There are no dividends that the insurance company shares. It only refunds the premiums you paid into the policy, minus any loans, during the term. Most of these plans come with a free a rider called Accelerated Benefits Rider which allows the policyowner to request a portion of the policy’s face amount if the insured is diagnosed by a physician with a terminal illness that is reasonably expected to result in death within 24 months or has been confined continuously for 90 days in a nursing home and is reasonably expected to remain there for the duration of the insured’s life. The maximum lifetime benefit available is the lesser of 50 percent of the death benefit or $250,000.

Refund of Premium Term Rates

Coverage Amount:$500,000
at Preferred Risk
Length of Term: 30
Return of Premium
Return of Premium
All rates are subject to age and state availability. Subject to underwriting.
As you can see the cost involved in buying a ROP 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

Go to 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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Here is a quick comparison of premiums between term life and whole life and guaranteed permanent  universal life. To create these quotes, carefully selected, highly competitive carriers are used. This table below is able to offer some clarity on what to expect from various guaranteed life plans. I offered these options to a real client of mine. See the rounded premiums below.

A Quick Comparison of Life Insurance Premiums

Insure in MInutesReal-time Life Insurance Rates

Face amount: $1000,000
10 Years Term
(convertible to guaranteed universal and whole life)
$19 monthly
20 Years Term
(convertible to guaranteed universal and whole life)
$34 monthly
30 Years Term
$64 monthly
30 years
Refund of Premium Term
$132 monthly
Universal Life (pay only till 65)
(Lifetime of coverage without cash values)
$583 monthly
Whole Life (pay only till 65)
(Lifetime of coverage with cash values)
$1,446 monthly
Please note: The rates quoted are estimates and are subject to underwriting by the insurance carrier.
Rates do not include optional riders. For a no-obligation consultation, call us at 1.866.526.7264.

The lowest premium term life plan may not be the best option for you.

When you see an ad on TV promising hundreds of thousands of dollars worth of term life insurance for a ridiculously low price, you need to keep in mind that they are only throwing a bone at you to call them. These ads only promote a 10-year term plan for those in perfect health (super preferred risk class). Obviously, the low premium quoted makes it look like a breeze to buy life insurance. There are a lot of good life insurance advisors out there to serve your best interest. It is important to talk to them in detail before taking a life policy.


The premium difference is obviously huge. While there is no right or wrong life insurance plan, it is what you need and afford that dictate the kind of life insurance plan you should go for. Life insurance can work as a mortgage protection vehicle, something to protect a loan, or an estate planning tool. Term life insurance plan can hardly take care of the death tax or estate tax issue. To take care of that, you must look into a guaranteed permanent life insurance option as a guaranteed financial legacy. Limited premium or single pay whole life and universal life insurance plans are very useful for those looking into covering estate tax through life insurance.

  • Premiums always remain level during the duration of a term in term life plan.
  • Universal life and whole life plans are usually custom-designed to suit your needs and affordability.
  • All quotes are subject to underwriting, age and state availability.
  • Always ask for optional riders that may enhance the value of your life insurance policy.

Purchasing life insurance is a major financial decision. Let not a few sleek TV ads or aggressive marketing sway you. A quick comparison of premiums, and what a life insurance plan can or cannot do for you is very important. Talk about your current and future family protection needs to a professional before you buy one. In a remote work environment, always ask for a virtual meeting.

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