Return of Premium Life Insurance – Money Back Life Insurance

Imagine getting a money-back guarantee on your Term Life Insurance: Your family receives a lump sum of money if you die, but if you live the company returns all of your premiums! Believe it or not, such a product now exists and is just one of the innovative solutions coming your way from some of the best insurers in the business. It’s called Return of Premium (ROP) and its aimed right at one of the greatest consumer objections to pure life insurance: “I’m probably not going to die, and my money will have been wasted.”

Most life insurance policies sold are either Term Insurance and Cash Value or Permanent Insurance. Term Insurance is cheap and easy to understand. With Level Term Insurance, you know exactly what the premiums will be for a fixed number of years. It’s very affordable life insurance protection, but you get nothing if you outlive the policy. Permanent Insurance, on the other hand, includes pure insurance coverage – guaranteed renewable for your whole life – along with an investment component to build cash value. Building cash value, however, means paying higher premiums. While an unused term policy can feel like a waste, a cash value policy can often cost two or three times as much for the same coverage. Return of Premium (ROP) Term is an elegant and effective new solution that splits the problem up the middle.

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