What Is Life Insurance Return Of Premium? 
Return of premium as a concept varies depending on the type of life insurance product with which it is associated . Return of premium term policies , once very popular , provide that the sum of the premiums paid over the level term period are provided as a cash value in some manner at the end of the term period - usually 30 years or less . In recent years , the premiums for these products have become quite expensive so they have fallen out of favor . When return of premium is associated with universal life insurance products , it is generally considered to be `` death benefit option 3 '' . In other words , the death benefit payable is always the initial specified amount plus the premiums paid to date . No all universal life products offer this feature . There are a few newer universal life products that are priced closer to term than permanent insurance but give some percentage of the premiums paid at key future milestones such as year 20 or 30 in as an optional cash surrender value . 