What Is A Return Of Premium Life Insurance Policy? 
A Return of Premium Life Insurance policy will pay back all the premiums you paid in if you are still alive when the years of the term are ended . E.g. if you took out a $ 250,000 thirty year term policy on your 40th birthday with an annual premium of $ 500 , on your 70th birthday you would get a tax free check for $ 15,000 -LRB- the policy may exclude paying back policy fees or other minor variations , but that is the gist of it -RRB- . You could keep the cash or may even be able to roll the $ 15,000 over into a single premium permanent policy with a higher value . In this example , you could have had a $ 250,000 term policy to cover a 30 year mortgage , and if you had passed in that 30 years , your house would have been paid off . But if you outlive the 30 year term , you still end up with a final expense fund or policy . Return of Premium -LRB- ROP -RRB- term often will pay back part of the premiums paid in if the policy is kept for a shorter period than the entire term , as well . The initial price for ROP Term is higher than for regular Term life insurance . And , contrary to the premiums for regular Term insurance -LRB- which are usually higher the longer the term -RRB- , ROP Term policies usually cost LESS the longer the term is . That is because the insurance company hangs onto your money longer and thus is able to return more to you after those years have passed . 