Does Term Life Insurance Fund A Savings Plan? 
No , Term Life Insurance does not fund a savings plan within the policy , like Whole and Universal Life Insurance do . The only type of term insurance that has any saving component is Return of Premium -LRB- ROP -RRB- Term . If you keep an ROP term policy at least half of the years of the term , it can return some of the premium if you drop the policy . If you keep the policy for the entire term , it can return all the premium you paid in . 