Return of Premium Term
Return of Premium (ROP) term life insurance is a term insurance policy 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 (depending on your age) than for non-Return of Premium 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. During the term period it provides the same death benefit protection as any other level term insurance.