What is a return of premium insurance policy?
A return of premium (ROP) life insurance rider is an optional add-on to a term life policy that, if you outlive the policy term, pays you all or some of the money you spent on policy payments.
Is return of premium life insurance a good investment?
The high costs and limited coverage options associated with return of premium life insurance make it a poor option for life insurance coverage. Instead, protect your family's financial security with a traditional term life insurance policy and save for your future with traditional savings or investment accounts.
Does return of premium life insurance have a cash value?
Unlike traditional term life insurance, return of premium life insurance builds cash value during the policy period. And, if the insured person is still living when the policy period is up, the owner of the policy can get the premiums* paid returned to them.