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Return of Premium Life Insurance

Return of Premium life insurance policy would provide you a return of the premiums you pay at the end of the policy expiry period. This is a different concept than traditional life insurance policies, where you don’t receive a return of your premiums. Most people prefer to add a return of premium life insurance policy on top of the term insurance policy. This helps them to make the insurance policy more sustainable.

How does return of premium life insurance works?

You will be able to go ahead and add a return of premium to your standard term life insurance policy. Then you will be able to keep that for the term of your life insurance policy, whether it is 10 years or 30 years. Then you will be able to keep on making monthly payments or annual payments to the life insurance policy in terms of premiums.

In case if the policyholder dies before the end of the term, a pre-defined amount will be paid to the beneficiaries as the death benefit. This amount would vary on how much you pay for the life insurance as premiums. In case if you don’t die before the end of the term period, you will be provided with 100% of premiums that you paid throughout the term.

Cost of return of premium life insurance

Return of premium life insurance comes to you along with a money back guarantee. Due to the same reason, it is an expensive life insurance policy. In fact, the overall cost of life insurance policy will be 2 or 3 times more than traditional life insurance.

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