A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Car Insurance Agent Daniel Walker

UPDATED: Nov 29, 2021

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Don't Miss These Facts

  • A term life insurance policy that pays back your premiums if you don’t die is called a return of premium (ROP) policy
  • Return of premium policies have obvious advantages but can be very costly depending on different factors
  • Some ROP plans can cost up to three times as much as a standard term life policy

If you have been paying into a life insurance policy, you may be curious where that money is going.

Some people wonder, “Can I increase my life insurance policy?” But other policyholders want to know how to get the money back that they have invested.

With a whole life insurance policy, you will be covered until you pass away. The money you pay in monthly life insurance rates is added to the death benefit of your policy.

A term life insurance policy, however, has an end date. If you pass away during the term of your policy, your beneficiaries will receive a payout. But what happens if you live past your life insurance term?

If you have a term policy, you may want to know more about life insurance companies that pay back if you don’t die.

A term life insurance policy that pays you back your premiums if you don’t die is called return of premium life insurance. A return of premium (ROP) policy has its advantages, but you should learn more before purchasing this type of plan.

You will probably want to find the most affordable life insurance companies that pay back if you don’t die. This may be tricky with an ROP policy, as they tend to be fairly expensive.

Doing online research to compare rates for life insurance companies that pay back if you don’t die is the best way to find the coverage you want at a price that works for you.

As you research quotes for life insurance companies that pay back if you don’t die, be sure to use our free quote tool above to compare rates and see how much you could save.

What life insurance companies offer return of premium plans?

There are plenty of life insurance companies that pay back if you don’t die. These companies offer term policies with a rider that states the policyholder gets the money back that they paid in premiums if they outlive their term.

While there are some life insurance companies that don’t pay back if you don’t die, some of the more popular companies that do offer ROP plans include:

  • AAA Life Insurance
  • Cincinnati Life Insurance
  • Assurity Life Insurance
  • State Farm
  • Indiana Farm Bureau Insurance
  • United Home Life
  • United Farm Family Life
  • United of Omaha

If you are interested in a return of premium life insurance policy, you should compare term life insurance rates with a regular term with rates from an ROP term to see the difference.

Enter your zip code below to view companies that have cheap life insurance rates.

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How much do return of premium policies cost?

While insurance rates vary based on many different factors, you will find that ROP policies cost much more than standard term life insurance policies.

With some companies, an ROP policy can cost three times as much as a standard term life plan.

With this in mind, a 25-year-old policyholder may pay around $20 per month for a 30-year term life policy of $250,000. This same individual could pay close to $60 for an ROP policy with the same amount.

Over the course of the 30-year term, this policyholder would pay over $14,000 more for the ROP policy.

What are the return of premium life insurance pros and cons?

Some of the advantages associated with an ROP policy include:

  • A death benefit if you die during the term
  • Premium payments will be paid back to you if you outlive the term
  • Refunds are tax-free
  • Some ROP policies build cash value

These advantages are why some people choose an ROP policy over a standard term life policy. But there are also disadvantages to this type of policy, including:

  • Premiums are much more expensive
  • Some companies have very strict rules and caveats
  • Canceling your policy before the term ends may mean you don’t receive a refund at all
  • You would likely make more money investing the price difference between a standard policy and an ROP policy yourself

As you consider the type of life insurance policy that would work best for you and your loved ones, be sure to take into account both the pros and cons of an ROP policy before making any decisions.

Use our free quote tool above to compare rates and see how much you could save.

Should I get an ROP life insurance policy?

If you don’t mind paying the high rates for an ROP plan, and you’re sure you can keep up with the payments throughout the designated term, an ROP plan could work for you.

But you should consider other — potentially wiser — investments before you purchase an ROP policy.

You may choose to purchase a whole life insurance policy if you’ll be tempted as you get older to wonder, “Can a term life insurance policy be converted to whole life?”

Looking online to compare policies from multiple companies is the best way to see how much you could be saving for life insurance.

Before you decide to buy life insurance that pays you back if you don’t die, try our free quote tool below to see your other options.

  1. https://www.iii.org/article/8-smart-steps-for-buying-life-insurance