[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.easyquotes4you.com\/what-is-return-of-premium-life-insurance\/#BlogPosting","mainEntityOfPage":"https:\/\/www.easyquotes4you.com\/what-is-return-of-premium-life-insurance\/","headline":"What is Return of Premium Life Insurance and How Does It Work?","name":"What is Return of Premium Life Insurance and How Does It Work?","description":"Quick Navigation Links Show 1 What is Return of Premium Life Insurance? 2 How Does Return of Premium Term Life Insurance Work? (ROP Term Life) 3 Return of Premium Option on Permanent Life Insurance 4 Return of Premium Term Life Insurance Companies 5 Permanent Life Insurance with ROP 6 Return of Premium Life Insurance Sample.. More<\/a>","datePublished":"2020-07-14","dateModified":"2020-08-07","author":{"@type":"Person","@id":"https:\/\/www.easyquotes4you.com\/author\/site-admin\/#Person","name":"Rob Pinner","url":"https:\/\/www.easyquotes4you.com\/author\/site-admin\/","identifier":1,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/e4da538e10e071b419f4843e8193941a0ff5ad58e937daa177fa846a5124dc4d?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/e4da538e10e071b419f4843e8193941a0ff5ad58e937daa177fa846a5124dc4d?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Rob Pinner","logo":{"@type":"ImageObject","@id":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2018\/09\/logo-shape-e1536791917640.png","url":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2018\/09\/logo-shape-e1536791917640.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2020\/07\/return-of-premium-life-insurance.jpg","url":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2020\/07\/return-of-premium-life-insurance.jpg","height":1280,"width":1920},"url":"https:\/\/www.easyquotes4you.com\/what-is-return-of-premium-life-insurance\/","about":["Life Insurance"],"wordCount":911,"keywords":["return of premium insurance","return of premium life","return of premium life insurance","return of premium term","return of premium term life","return of premium term life insurance","rop life insurance"],"articleBody":" Quick Navigation Links Show 1 What is Return of Premium Life Insurance? 2 How Does Return of Premium Term Life Insurance Work? (ROP Term Life) 3 Return of Premium Option on Permanent Life Insurance 4 Return of Premium Term Life Insurance Companies 5 Permanent Life Insurance with ROP 6 Return of Premium Life Insurance Sample Rates 7 Term Life vs. ROP Term Life 8 Should I Buy ROP Life Insurance? 9 Should I buy ROP Life Insurance? 10 Is ROP Term Life cheaper than regular term? 11 What are the advantages of ROP Life Insurance? What is Return of Premium Life Insurance?To most consumers, life insurance is used to protect there loved ones in case of a premature death. And most life insurance isn\u2019t something that you get money back unless you do die.But what if I told you that their is a life insurance product that you if you don\u2019t die, you can get all you money back that you put in. Would that interest you?You are in luck, Return of Premium life insurance (ROP) is available.Return of premium life insurance is most commonly added as a rider to a term life insurance policy, but now even some life insurance companies have this feature added at no cost to there guaranteed universal life insurance.How Does Return of Premium Term Life Insurance Work? (ROP Term Life)Return of Premium Term Life Insurance (ROP Term Life) works very similar to a term life insurance policy except you can add a rider that allows all premiums paid in to be returned if you live to the end of the term period. You don\u2019t earn interest on the premiums paid in.For example, if you owned a 20 year Return of Premium Term Life policy (ROP Term) and lived 20 years, you would get all your premium back. If you die during those 20 years then your beneficiary would get the death benefit.Most ROP Term Life products come in 15, 20, 25, or 30 year term periods, depending on your age and the amount of coverage. Some ROP Term Life Insurance will let you use the premium owed to you to buy a reduced amount life insurance, and never make a premium payment.This is good for someone whose health has changed since the policy was purchased and can\u2019t qualify for any new life insurance. Return of Premium Option on Permanent Life InsuranceAbout 3 years ago, all you could purchase was ROP Term Life Insurance, but that has changed. There are a few companies that do offer the return of premium option on there guaranteed universal life products, already built into the premium.The way the rider works is very similar to ROP Term Life. At the end of either 20 or 25 years, you have an option to walk away with your premium paid in with no interest. But you also have the option of not cashing in a keep the policy forever. The guaranteed universal life policies that offer this feature also come with the living benefits rider built into the premium. This allows the insured to access a percentage of the death benefit if he\/she become critically\/chronically ill. Return of Premium Term Life Insurance CompaniesNot as many companies offer ROP Term Life because of today\u2019s low interest rate market. Here is the list:AAA Life Insurance CompanyAmerico Financial Life and Annuity Insurance CompanyAssurity Life Insurance CompanyBaltimore Life Insurance CompanyColumbian Life Insurance CompanyCincinnati Life Insurance CompanyIllinois Mutual Life Insurance CompanyUnited Farm Family Life Insurance CompanyUnited of Omaha Life Insurance CompanyThe rates will differ by company. Just like any other life insurance policy; age, gender, and health will play a key role.Permanent Life Insurance with ROPWe mentioned earlier that some companies have started offering Return of Premium Life Insurance on permanent policies. They are:American National Insurance CompanyAmerican General Life North American Life & AnnuityReturn of Premium Life Insurance Sample RatesMale $250,000 Standard Non-Smoker Female $250,000 Standard Non-SmokerTerm Life vs. ROP Term LifeBelow are charts showing the difference in price between a term life policy compared to a ROP term life policy.Male $250,000 Standard Non-SmokerFemale $250,000 Standard Non-SmokerShould I Buy ROP Life Insurance?Whether or not you should buy a Return of Premium Life Insurance policy is going to depend on your needs and what best fits your budget. Make sure to get all options available to ensure you make the right choice for you and your family.Always work with an independent agent who has access to multiple insurance carriers. This will cut down how much research you have to do yourself. When getting ROP life insurance quotes, always get a full illustration so you can fully understand how the return of premium feature operates. If you have any questions or need quotes, give us a call or shoot us an email. Thanks for reading.\t\t\t\t\t\t\t\t\tShould I buy ROP Life Insurance?\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tWhether or not you should buy a Return of Premium Life Insurance policy is going to depend on your needs and what best fits your budget. Make sure to get all options available to ensure you make the right choice for you and your family.\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tIs ROP Term Life cheaper than regular term?\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tNo, ROP Term Life is going to be more expensive than regular term life insurance. \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tWhat are the advantages of ROP Life Insurance?\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tThe major advantage of return of premium life insurance is that you get all premiums paid in back at the end of the term period. \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t{\t\t\"@context\": \"https:\/\/schema.org\",\t\t\"@type\": \"FAQPage\",\t\t\"mainEntity\": [\t\t\t\t\t{\t\t\t\t\"@type\": \"Question\",\t\t\t\t\"name\": \"Should I buy ROP Life Insurance?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"Whether or not you should buy a Return of Premium Life Insurance policy is going to depend on your needs and what best fits your budget. Make sure to get all options available to ensure you make the right choice for you and your family.\"\t\t\t\t\t\t\t\t\t}\t\t\t}\t\t\t,\t\t\t\t{\t\t\t\t\"@type\": \"Question\",\t\t\t\t\"name\": \"Is ROP Term Life cheaper than regular term?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"No, ROP Term Life is going to be more expensive than regular term life insurance.\"\t\t\t\t\t\t\t\t\t}\t\t\t}\t\t\t,\t\t\t\t{\t\t\t\t\"@type\": \"Question\",\t\t\t\t\"name\": \"What are the advantages of ROP Life Insurance?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"The major advantage of return of premium life insurance is that you get all premiums paid in back at the end of the term period.\"\t\t\t\t\t\t\t\t\t}\t\t\t}\t\t\t\t\t\t]\t}"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"What is Return of Premium Life Insurance and How Does It Work?","item":"https:\/\/www.easyquotes4you.com\/what-is-return-of-premium-life-insurance\/#breadcrumbitem"}]}]