Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Return of Premium Life Insurance

Return of premium life insurance policies allow you to recoup some of the money you've paid over time for your coverage. Here, we'll review the costs and benefits of return-of-premium life insurance so that you can decide if this type of policy is right for you.

Playful young couples on the beach

What Is Return of Premium Term Life Insurance?

Traditionally with term life insurance, your beneficiaries receive a death benefit if you die while your policy is in force. But if you outlive your policy’s term of coverage, you and your beneficiaries may receive nothing.

It can seem like a major loss, considering the thousands of dollars you may spend over the course of a term life plan. For some, it’s just the cost of good fortune. But for others, those are valuable dollars worth recovering and a major incentive to purchase a term policy with a return of premium option.

A return of premium life insurance policy allows you to recoup some or even all of the premiums you paid into your policy if you outlive your policy’s term. In many cases, this return of premium option is a rider on your traditional term life insurance policy. That is, it’s a feature that an insurance company may or may not offer on top of the base policy.

How Much Does a Return of Premium Policy Cost?

Return-of-premium life insurance can cost hundreds of dollars more annually than traditional term life insurance. While you may recoup your money on the back end, it could mean paying higher premiums throughout the life of the policy.

Deciding whether to purchase this kind of life insurance policy means thinking through your long-term expenses. You may also want to consider the increased costs of the policy. There could be better uses for the extra money you spend on premiums.

Learn more about your life insurance options by reading these featured articles:

*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.

Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Related Information

How to Secure Affordable Term Life Insurance Premiums

If you're considering purchasing term life insurance, you should be aware of several factors that can influence your premiums.

Read More

Definition of an Insurance Premium

Insurance premiums are the monthly or annual payments you make to an insurance company for life insurance coverage.

Read More

Term and Whole Life Insurance Policy Costs and Coverage

How much you pay for life insurance depends on your age, health, the type of insurance policy you buy and how much coverage you want.

Read More

Life Insurance in Your State

Do you know the insurance laws in your state? Don't buy a life insurance policy before you read this.

Read More

How Will My Beneficiary Get My Life Insurance Payout?

If you die, whoever you named beneficiary on your life insurance policy will get the death benefit or payout. Learn more about how it works.

Read More

Does Life Insurance Test For THC?

Many life insurance companies test for THC. Testing positive could drive up your premiums or prevent you from obtaining a policy altogether.

Read More

Do You Have To Have Life Insurance With A Mortgage?

You aren't required to have life insurance to get a mortgage, but having a life insurance policy while you are making mortgage payments could be beneficial.

Read More

The Benefits of Joint Life Insurance

Under joint life insurance policies, you and your spouse can gain protection for an entire lifetime or for a specific term. Find the best plan for you.

Read More

Why Buy Level Term Life Insurance?

Level term life insurance policies have predictable and level premiums. Learn more about how you can help protect your family's financial future.

Read More