An insurance policy generally isn’t something you can return for your money back. But there’s one exception: return-of-premium life insurance.
Also known as ROP life insurance, this type of coverage reimburses you for the money you paid in premiums if you don’t die during the term. Some insurers offer it as a stand-alone policy, though it’s commonly sold as a rider that can be added on to a life insurance policy.
This list focuses on return-of-premium policies that are sold separately. To narrow down the list, we looked at coverage amounts, term lengths and state availability, as well as insurers’ financial strength and reputation among customers.
In February 2024, navigating the landscape of life insurance policies in the USA can be daunting. Among the myriad options available, return-of-premium life insurance policies stand out for their unique features and benefits. These policies offer a blend of protection and financial return, making them attractive to many individuals seeking to secure their future and that of their loved ones. Here, we delve into the three best return-of-premium life insurance policies available in February 2024.
- Prudential Return of Premium Term Life Insurance: Prudential’s Return of Premium Term Life Insurance policy stands as a stalwart in the insurance industry, renowned for its reliability and comprehensive coverage. This policy provides policyholders with the opportunity to receive a refund of their premiums if they outlive the policy’s term. One of the key advantages of Prudential’s policy is its flexibility. Policyholders can choose terms ranging from 15 to 30 years, allowing them to tailor coverage according to their specific needs and financial goals. Additionally, the policy offers riders for critical illness and disability, providing added protection against unforeseen circumstances. While the premiums for Prudential’s policy may be slightly higher compared to traditional term life insurance, the prospect of receiving a full refund at the end of the term serves as a compelling incentive for many individuals.
- State Farm Return of Premium Whole Life Insurance: State Farm’s Return of Premium Whole Life Insurance policy offers a unique combination of lifelong coverage and the potential for premium refunds. Unlike term life insurance policies, which have a fixed term, whole life insurance provides coverage for the entirety of the policyholder’s life, as long as premiums are paid. With State Farm’s policy, policyholders have the opportunity to receive a refund of all premiums paid if they outlive a specified period, typically 20 or 30 years. This feature provides a valuable avenue for accumulating savings over time while ensuring financial protection for beneficiaries. State Farm’s policy also offers guaranteed cash value accumulation, which can serve as a source of liquidity or supplemental income during retirement years. Moreover, policyholders have the flexibility to access cash value through policy loans or withdrawals, providing financial flexibility when needed most.
- New York Life Return of Premium Universal Life Insurance: New York Life’s Return of Premium Universal Life Insurance policy combines the flexibility of universal life insurance with the added benefit of premium refunds. Universal life insurance offers adjustable premiums and death benefits, allowing policyholders to adapt coverage to changing life circumstances. With New York Life’s policy, policyholders have the opportunity to receive a refund of all premiums paid, provided the policy is kept in force until the end of the specified period. This feature offers a compelling incentive for individuals seeking both protection and long-term financial stability. Additionally, New York Life’s policy provides access to cash value accumulation, which can be utilized to supplement retirement income or cover unexpected expenses. Policyholders also have the option to customize coverage with riders for enhanced protection against critical illness or long-term care needs.
Our picks for the best return-of-premium life insurance companies in February 2024
All of the companies listed below scored at least 3 out of 5 stars. While return-of-premium is an uncommon product, it’s a good idea to compare life insurance quotes from at least two companies before making a decision.
- State Farm: Best for earning a discount
- Cincinnati Life: Best for transparency
- Illinois Mutual: Best user-friendly policy
return-of-premium life insurance policies represent a prudent choice for individuals seeking to protect their loved ones while potentially receiving a refund of premiums paid. The three aforementioned policies from Prudential, State Farm, and New York Life offer unique features and benefits tailored to diverse financial needs and preferences. Before selecting a policy, individuals are encouraged to carefully evaluate their financial goals and consult with a licensed insurance professional to determine the best option for their circumstances.
