Return of premium term is term life insurance that pays you back your premiums if you are still alive when the term ends. If you die during the term, your beneficiary gets the death benefit instead.
Who it fits
People who want term coverage for a set number of years and are willing to pay more for the chance to get their money back.
- Who buys it
- Ages 18 to 60
- Medical exam
- SometimesDepends on age, amount and company
- Ages
- Texas says most companies offer term life only up to a certain age, usually 70 or 80. This is for term policies in general.
What to know before you buy
If you outlive the term, the company refunds the premiums you paid.
Florida says the premium is significantly higher than plain term insurance.
There is no savings account to borrow from while the policy is active.
With regular term, you get nothing back if you outlive it. Only a return of premium policy or rider pays you back.
Premiums stay the same during the term. If you renew after the term ends, the price is based on your new age.
Common questions
When do I get my money back?
At the end of the term, if you are still alive.
What if I die during the term?
Your beneficiary gets the death benefit.
Why does it cost more than regular term?
Because the company may have to pay you back your premiums. Florida says the price is significantly higher than simple term.
Can I borrow from it?
No. Florida says this policy has no cash value.
