With Return of Premium Life Insurance (ROP Life Insurance), the insurance company charges more than regular term insurance, then invests your money so that they can return your premiums back to you when the term ends. Sometimes you can get back part of the premium if you hang onto the policy for about half the term, and the amount that is returned to you increases until it reaches 100% at the end of the term.
While substantially higher priced than regular term insurance, the return is usually much better than a Certificate of Deposit, and you get the money back tax free. For those who want term insurance but feel that they are throwing their money down the drain, Return of Premium Term can be a good solution.
That is a great question! These policies are about as close to a "no lose" policy as you can get. The way they work is that the term policy that you purchase has a built in expense that guarantees that when your policy reaches it's end date, that you can get back most of the premiums that you paid into the policy over its life. They deduct a fee, usually, and send you a check for the rest. Not a bad deal! Thanks for asking!
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While substantially higher priced than regular term insurance, the return is usually much better than a Certificate of Deposit, and you get the money back tax free. For those who want term insurance but feel that they are throwing their money down the drain, Return of Premium Term can be a good solution.