Return of Premium Term Life Insurance provides peace of mind by offering protection for a set period—such as 10, 20, or 30 years—and returning all your premiums if you outlive the term. It’s a reassuring option for those who want to care for their loved ones without feeling like their money goes to waste. While it may cost a bit more than standard term coverage, it offers both security and a sense of financial return.
ROP Term Life: Get Your Premiums Back
For example, imagine that you’re buying a $1,000,000 policy with a 30-year term. Let’s say your premiums may cost $10,000 per year; your actual premiums will vary depending on your age, health and other factors. At the end of the 30th year, the insurance company will pay the policy owner $300,000, tax free. That’ll be a pretty good addition to your retirement savings.
If you die during the term, your beneficiaries will collect the $1 million death benefit in the same way as a traditional policy. ROP life insurance costs more than a traditional term life policy. The extra cost is invested by the insurance provider to be paid back to the owner of the policy when it expires. Is the possibility of a full refund at the end of the term worth the extra expense? Many consumers think so.
Consider this: a traditional 30-year term policy with a $1,000,000 face amount (similar to the example above) might cost $6,000 per year. That equals $180,000 over the course of the term. If you live beyond that 30 years, you can purchase another policy at much higher rate or simply go forward uninsured. With a return of premium plan, you’ll pay more in premiums, but if you outlive the term, you’ll get it all back. That can help pay for your new policy, if you decide to buy one, or you can use it however you like.
Return of premium life insurance policies are available in 15, 20 and 30 year terms.
Is Return of Premium Term Life the Right Choice for You?
Every situation is different. AccuQuote can help you assess your needs and provide you with unbiased advice to help you make an educated decision. We’ve been helping people like you find the best value in life insurance since 1986. We make the buying process as easy and quick as possible for our customers. For many of our customers, we become lifelong advisors.
Give AccuQuote a call today at (800) 442-9899 and let us help you find the best insurance rates for your situation. We’ll make it as quick and easy as possible. You can also get a free quote by clicking the button below.
Unmatched Expertise and Personalized Care in Life Insurance
