Return of Premium (ROP) term life insurance is a revolutionary product that combines the advantages of traditional term life insurance such as affordable, guaranteed level-premium periods (10, 20 or 30 years), with a return of premium feature. At the end of the level-premium period, 100% of the premiums paid will be returned to you!
How is this possible? The insurance companies that offer this product charge slightly more for it than traditional term insurance. During the level-premium period, the insurance company is able to invest portions of the premium for capital growth. As a result they are able to return your premiums to you at the end of the level-premium period.
For those in their twenties and early thirties, the added cost of theses policies are not too significant and, therefore, this is usually an excellent option. For people older than this group, the difference between this type of policy and regular term are often great enough to make this product a not-so-attractive option.