Return of Premium Life Insurance is a newly term life insurance policy that provides both death benefit protection and a return of the total insurance premium.  This policy may cost about 25 percent to 50 percent more a year than regular term insurance, but the cost can depend on your age, physical conditions, and habits. It offers the same benefits as traditional term life insurance.

This is how return of premium life insurance works:

If policy is kept for the term period, the insurance company will return the entire premium that was paid for the insurance.  The term period can be 15, 20, or 30.  Also, a few insurers are now offering a 25 year term.  The premium is fixed and does not change during the selected term, even as you get older or if your health declines. If the policy is canceled before the end of term there is some partial return of premium. But the longer the policy is kept, the higher the amount of the return.

The reward for keeping the policy is getting a guaranteed return of your total cumulative premium paid on policy during the level term period. The Return of Premium Life Insurance is income tax free because you do not receive more than you put in.  This premium does not include extra health charges or rider charges. It is not sold as an investment and there is no interest growth like a policy with the cash value feature, but if you terminate policy before coverage term ends you can receive an ample sum back. If you decide to borrow money against policy the cash value will allow you to do that without terminating the policy.

Terminating the policy will give you a small percentage back. What a great plan to have and what makes it so populate is that your investment in Life Insurance is unconditionally reimbursed. This Life Insurance plan is popular with young people.  They find this coverage appealing because it allows them to think not so much about their death, but their future.  This is a plan that deserves your attention and makes sense to invest in since you do not lose anything.