Return of Premium Life Insurance

Outlive Your Policy and Get Your Money Back

Add a return of premium rider to your term life policy and get your premiums refunded at the end of the term.

What is a life insurance return of premium rider?

Life Insurance that Returns Premiums

Return of premium (ROP) is a life insurance rider that can be added to a term life policy. An ROP effectively reduces the net cost of a term life policy to zero by refunding the total sum of your premiums paid at the end of your policy term. It’s important to note, however, that premium payments do not accrue interest over the life of the policy, and fees are often deducted from the lump sum payout.

A return of premium rider might be the right choice for you if:

You’re young, health, and have a term life policy
You don’t mind paying a bit more up front to receive your premiums back at the end of the term
You don’t qualify for a permanent life insurance policy with cash value

Benefits of Return of Premium Term Life Insurance

No Medical Exam

It’s easy to apply and no medical exam is required for ROP approval.

Moneyback Guarantee

Get a lump sum reimbursement if you outlive your term life insurance.

Tax-free Payout

Your ROP refund is not considered income and is not taxed by the IRS.

Seriously, this won't hurt.

Give us 30 minutes and we’ll find you insurance that fits your life. It’s that simple.

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Return of Premium FAQs

How much does return of premium life insurance cost?

Can I get my premiums back before the end of my policy term?

Is a return of premium rider worth it?

It really depends on your personal situation and other life insurance options. If you’re only able to afford or get approved for term life insurance but want to treat your life insurance policy as an investment (vs an expense), an ROP might be a good option for you. If you’re able to invest in a permanent life policy or can invest the extra money you’d spend on an ROP in a vehicle that earns interest, those might be better options. If you’d like help weighing your options, the life insurance advisors at Principled Life are here to help.

(888) 835-2904

Curious about life insurance? We can help.

We know this isn’t easy. That is why we do our best to make getting life insurance quotes as simple and convenient as possible. If you want to learn more about life insurance, feel free to contact us or visit our Learning Center for more information.