Return of Premium Term Life Insurance

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With Return of Premium term life insurance you get the best of both worlds. You have the ability of having your life insured with the great advantage of receiving all your money back after the term period. These policies will normally begin with a 15 year term period going as high as a 30 year term. Not all life insurance companies offer these plans.

If you wonder how a life insurance company has the ability of returning your money and still be able to make a profit, that is a easy question to answer. They must carefully invest your money and make a substantial return on their investment.

The side effect to these policies are a higher premium, usually about double what the premium would be with a normal policy with the same term period. The good part is, you still get all you money back including the added expense of the Return of Premium rider option.

These are definately a smart idea for the insurance buyer that needs the insurance coverage but would also like their premiums returned at the very end of the term period. If the applicated passes before the end of the term period, the policy will pay the normal face amount without any of the premiums returned.