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Insurance 101

What is return-of-premium life insurance?

Insurance 101

What is return-of-premium life insurance?

Discover how you might be able to get back your payments once your term policy ends

Term life policies are great assets that can help keep you and your family financially protected for a time. The protection’s great, but once you live past the end of your term length, that’s it, right? Nothing else happens?

Not always. Some insurers may offer what’s called a return-of-premium life insurance policy. If you’re hearing this for the first time, don’t worry. Hang out with us in this little breakdown on returns of premiums, riders, and what all this could mean for you. And hey, you might even get a little bit of money back, who knows.

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  1. What is return-of-premium life insurance?
  2. How much will I receive with return-of-premium?
  3. What’s the cost of return-of-premium life insurance?
  4. Pros and cons
  5. Looking for life insurance?
  6. TL;DR

What is return-of-premium life insurance?

A return-of-premium policy is exactly what it says on the tin; a reimbursement of premiums paid during the length of your term. Some companies offer this as either a return-of-premium rider (an add-on to your policy) or as a fully-functioning term life policy, also known as an ROP policy.

How much do I receive with return-of-premium?

Typically, you’d receive 100% of what you paid in premiums should you outlive your policy term length. Best part is that money is returned to you tax-free, so cha-ching.

What’s the cost of return-of-premium life insurance?

Return of premium riders are an additional cost that you can add to your term life policy. If you live past your term length, your premiums as well as the cost of the rider will be returned to you 100%.

If you want to purchase an ROP policy, it’s going to be more expensive than a traditional term life policy. In some cases, you could end up paying as much as 2-3 times more. 

How expensive return-of-premium can get

*Based on a 25 year old non-smoker**hypothetical based on data provided by Policygenius

Pros and cons

Getting term life with return-of-premium attached could be a great investment, depending on your needs. While it’s attractive to get that money back, it isn’t new money you’re receiving. It’s your money, just being returned. And you have to maintain the policy for the entirety of the term length. 

However, if you’re comfortable with footing the bill with increased premiums, it’s something to explore. Think of return-of-premium as a sort of savings account that you withdraw from once your policy term is done. 

Looking for life insurance?

If you’re in the market for fast and flexible term life insurance, then try out our Wysh Builder tool today. Customize your very own Wyshbox policy to get a sense of whether our policy or a return-of-premium policy or rider would be right for you.


  • Return-of-premium reimburses you 100% of premiums paid during term life insurance policy
  • Can either be added as a policy rider or as a standalone policy
  • More expensive than traditional term life policies

The opinions we expressed in this post are for general informational purposes only and are not intended to provide specific advice or recommendations.