Return of Premium Life Insurance

If you are in the market for return of premium life insurance, you probably have come across a lot of options. One popular option is term life insurance, which is well-known as one of the more affordable choices with one of the highest payouts. However, one thing that might stop you from buying this type of coverage is your term might end before you need it.

What is Return of Premium Life Insurance?

Luckily, this is where return of premium life insurance can come in handy. Once you learn a little more about this option, you may want to consider it.

Basically, return of premium life insurance works in the same way any term coverage works. You will pay a monthly premium and receive life insurance coverage for a stated amount until the end of the agreed-upon term. If you pass away during this time period, the coverage amount will be given to your beneficiary.

return of premium life insurance

However, the difference with return of premium life insurance is if you do outlive your policy, you won’t have to worry about losing all of your money. Instead, you can get a refund of the cash you paid during the time of your life insurance contract. This can provide peace of mind and give you an incentive to purchase coverage, even if you feel certain you’ll outlive the term you choose.

What are the Pros and Cons of Return of Premium Life Insurance?

As you can imagine, return of premium life insurance coverage has quite a few advantages:

  • Purchase enough coverage to pay your mortgage, put your children through college or otherwise ensure your family is taken care of if you suffer from an untimely death.
  • Enjoy higher levels of coverage with cheaper monthly rates.
  • Have peace of mind; you don’t have to worry about losing your money, because you will get cash back equal to everything you paid at the end of your coverage term.

However, you should be aware of a few disadvantages:

  • Return of premium life insurance rates will be higher. Although this can be worthwhile, since you’ll get the money back eventually, it can be tough if you don’t have much to spare for a more expensive policy in the meantime.
  • You may be required to submit to a health exam and health questions. Many companies don’t offer “no medical exam required” options for this type of coverage.
return of premium life insurance rates

As with anything, there are pros and cons to purchasing return of premium life insurance. However, you should know the perks outweigh the disadvantages for many people. So it’s definitely worthwhile to compare your options online and even fill out a few applications to make the right decision.

How to Find the Best Return of Premium Life Insurance

We are well known for helping both younger adults and seniors find great policies, from return of premium life insurance to regular term  life insurance coverage and more. In fact, you might be surprised by some of the low-priced quotes we found for a 42-year-old adult male who is in good health and wanted a 20-year option with $250,000 in coverage. With a health exam, his monthly payments could be as low as $26.82 a month. Without a health exam, he still can enjoy reasonable premiums of $88.74 per month.

If you use our instant quote finder, you can enjoy low life insurance premiums and top coverage as well. So give it a try today to get started toward the coverage you need.