When a policy holder pays in money for their life term insurance there is no guarantee that the beneficiaries will ever get what is actually been paid into the policy.  New to the life insurance world, there is a type of insurance that pays the premium back to the policy holder, when the term has ended.  This article is about the Return of Premium Life Insurance and how it benefits the policy holder.

With most policies, if the policy holder cancels their life insurance, they lose all of the money that they have paid into their policy. The Return of Premium Life Insurance rewards the policy holder by giving them back their full premium when their policy ends. This does not include any riders or health charges. 

The Return of Premium Life Insurance is worth considering since you won't lose any money, if no death benefits are paid out during the term of the policy.  However it will cost the policy holder more than a traditional life term policy. How much more it will cost depends on the age of the policy holder and the term of the policy.  The younger the policy holder and  longer the term, the less amount that the  policy holder will have to pay. 

There are some features to consider with Return of Premium Life Insurance.  The coverage of the policy can run between a hundred thousand to one million plus. The premium is fixed for the duration of the term.  The benefits remain the same during the term of the policy.  The insured  is insured until the age of ninety five. 

There are several benefits to having Return of Premium Life Insurance.  If the policy holder is still living at the end of the term, they will receive their premium back.  If they should die, the beneficiaries will receive the death benefit that was set up for that policy. If after the term is finished the  policy holder wants their premium back, they can convert to a whole life policy for up to ninety days. All returned premiums are taxed free and will be returned to the policy holder at the end of the term. 

In addition to the benefit that the Return of Premium Life Insurance has for policy holders, this type of  term policy is good for serveral situations.  By protecting the mortgage, this insurance insures that the motgage can possibly be paid off with the cash value at the end of the term.  It can also help finance college for the policy holders children.  It can help supplement their retirement.  

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