Enjoy term life insurance coverage that won't leave you empty-handed when your policy expires.

Return of Premium Term Life

Return of premium (ROP) life insurance, is a type of term policy that refunds all your premiums at the end of the policy period if you are still alive. You can buy this coverage in various terms, usually 10 to 30 years, and you’ll pay a flat premium during that time. So if you were to make all of your premium payments and live through the entire term of the policy, the life insurance company would refund you the amount you paid in premiums.


Forced Savings

Return of premium life insurance is like a forced savings product of sorts. You’ll pay higher premiums for this type of coverage than you would for traditional term life insurance, but you’ll have the benefit of getting your premiums back when your policy ends. Also be aware that some return of premium policies build cash value you may be able to borrow against.


Can You Cancel & Get Your Money Back?

If you decide to surrender your return of premium life insurance policy before the term ends, you may or may not receive part of your premiums back. It all depends on the insurance provider you select and the terms their policies include. Generally speaking, however, you’re more likely to get your premiums back the longer you have owned your policy. Many providers do not offer any return of premium within the first few years.


Does Return of Premium Life Insurance Cost More?

The cost of a return of premium life insurance policy is typically 30% more than traditional term life insurance coverage. However, if you outlive your policy, you do get your premiums back when your term expires, so that doesn’t mean this coverage is a poor value.


Is Return of Premium Life Insurance Worth It?

In some ways, return of premium life insurance is almost like a savings account that comes with free life insurance, because if you outlive your policy, you do get your premiums back when your term expires.

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Coughlin Insurance Services, Inc.
178 Myrtle Boulevard, Floor 2, Larchmont, NY 10538
Toll Free : (800) 542-0661
Tel: (914) 834-1234 Tel: (212) 593-0200

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