Does term life insurance return premium

  • Ando
  • November 08, 2023
  • 556 Views

Standard term life insurance does not return premiums if you outlive the policy term. However, there is a type of term life insurance called return of premium (ROP) life insurance that does return premiums if you do not die within the policy term. ROP life insurance is typically more expensive than standard term life insurance because it offers a guaranteed return of premiums.

What Is Return of Premium Life Insurance?
Return of premium (ROP) life insurance is a type of term life insurance that returns all or part of the premiums paid if the insured outlives the policy term. It offers a refund of your total premium payments, including the base policy premium and the ROP rider premium, if you are still alive at the end of the policy term.

How Return of Premium Life Insurance Works
You choose a policy term, ROP life insurance is typically available for policy terms of 10, 20, or 30 years.
You pay premiums, You will pay premiums for your ROP life insurance policy throughout the policy term.
If you outlive the policy term, If you outlive the policy term, you will receive a refund of all or part of your premiums. The exact amount of the refund will depend on the terms of your policy.
If you die within the policy term, If you die within the policy term, your beneficiaries will receive a death benefit. The death benefit is typically a multiple of the annual premium.