Term life insurance policies offer insurance protection for a specified term or period of time - typically, one, five, 10, 15, 20 or 30 years, or until a specific age (such as 65). Premiums may increase each year (annually renewable term) or remain level for a set period (level term), and the insurance is generally less expensive than permanent (cash value) life insurance.

At the end of the term period the policy may be renewed without a medical exam, although the premium rate will be higher. Some term life insurance policies include the option to convert to a permanent insurance policy.

Term life insurance is typically purchased by individuals who need insurance coverage for a temporary period of time - or who need a large amount of life insurance at the lowest possible cost.

Since traditional term life insurance provides a death benefit only, the policies do not offer an opportunity to build cash values. However, a new product concept known as "return of premium term" provides a return at the end of the level-premium period in the amount of the cumulative premiums paid - an alternative to traditional term life and permanent insurance products.

Return of Premium Life Insurance (ROP Term)

Return of premium life insurance is a newly introduced term life insurance policy that provides both death benefit protection and a return of premium insurance feature. It’s simple to understand: If you keep your policy for the term period, at the end of that time whether 15, 20 or 30 years, the life insurance company that issued the insurance with the return of premium policy returns all of the premium that you paid for the insurance. There also is some partial return of premium for policies canceled before the end of the term (depending on the year it’s canceled – the longer it’s kept , the higher the amount of the return.)

Return-Of-Premium Insurance is aimed right at one of the greatest objections to traditional term life: “I am probably not going to die, and my money will have been wasted." When you buy insurance with a return of premium option, you do not have to waste your money. Unlike regular term policies, Return of Premium term life insurance rewards you for living by offering a guaranteed return of your total cumulative premium paid on the policy during the level term period, not including substandard (extra charges for health) and rider charges (extra benefits such as disability coverage), if any, which will be paid to the policy owner at the end of the level term period if the policy is then in force.

Here’s an example: Male, age 35 with the best rate of preferred plus, $500,000 of 30-year return of premium term life insurance:

Annual premium = $810; Return of Premium after 30 years = $24,300

($810 x 30yr = $24,300)

The life insurance return of premium is also income Tax Free, because you aren’t receiving back more than you put into the return of premium life policy.

The return of premium term life insurance policies feature fully guaranteed level premiums for the first 15, 20 or 30 years and in some cases the life insurance can continue to age 95.

For a Live Quote give us a call 877-777-7055
or click here to fill out Life Quote Form