Return of Premium Term Life Insurance | SelectQuote
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Return of Premium Term Life Insurance

Return of premium term life insurance pays all premiums back to the policyholder at the end of the term period.

Return of premium term life insurance definition

A return of premium term life insurance policy returns all premiums (except for amounts paid for riders, extra benefits or surcharges for higher-risk clients) at the end of the level premium period – or term – when the policy is cancelled.

Who can buy return of premium term life insurance?

If you’re healthy and between the ages of 18 and 75, chances are you can buy return of premium term life insurance. When it comes to pricing, these policies tend to be more affordable for younger people in excellent health. Usually, people with terminal conditions are unable to qualify for this type of insurance. On the other hand, cancer survivors, diabetics, and people who take medications for heart disease and other conditions are often approved for coverage.

How does return of premium term life insurance work?

You can buy return of premium term life insurance for five, 10, 15, 20, or 30 years – however long you need it. So long as you pay your premiums on time, your policy will remain active until the end of the term period you’ve selected. If something happens to you while the policy is active, your beneficiaries will receive a death benefit for the amount of the policy. This type of insurance is more expensive than a regular term life insurance policy. Some policies pay a partial return of premium if the policy is cancelled before the end of the term.



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