How Does Return Of Premium In Life Insurance Work? 
With Return of Premium Life Insurance -LRB- ROP Life Insurance -RRB- , the insurance company charges more than regular term insurance , then invests your money so that they can return your premiums back to you when the term ends . Sometimes you can get back part of the premium if you hang onto the policy for about half the term , and the amount that is returned to you increases until it reaches 100 % at the end of the term . While substantially higher priced than regular term insurance , the return is usually much better than a Certificate of Deposit , and you get the money back tax free . For those who want term insurance but feel that they are throwing their money down the drain , Return of Premium Term can be a good solution . 