Return of Premium Insurance Rider
Help your family get the most value out of your life insurance investment, even if you outlive the policy.
What Is a Return of Premium Insurance Rider?
A return of premium (ROP) rider is a type of life insurance rider, or an optional feature you can add to a new or existing life insurance policy. With return of premium, you get reimbursed for some or all the life insurance payments you’ve made over the years if your policy expires while you’re still alive. For example, if you paid $50 a month for 10-year term insurance with return of premium, you could receive $6,000 back – tax-free.
A return of premium rider can be a win-win in the right circumstances: financial security if your family needs it, and your insurance investment returned if you don’t. Regardless of how long you live, you can be confident that your policy will provide a cash cushion for you or your family. That said, adding a return of premium insurance rider will raise your life insurance rates and means you can’t invest those extra dollars elsewhere. Like all life insurance purchases, it’s important to consider your options carefully to find the right fit.