Our editorial team follows strict guidelines to ensure accuracy and objectivity. Learn more about our process.
Return of premium life insurance costs 30 to 50 percent more than a standard term policy, and in exchange, you get every dollar back if you outlive the term. Whether that trade-off makes sense depends on one question: what would you do with the extra premium if you invested it instead? For many people, a standard term policy plus disciplined investing outperforms ROP over the same period. For others—especially those who won’t invest the difference—the guaranteed refund has real value. This page shows you the actual cost comparison and the scenarios where ROP earns its premium.
What is return of premium life insurance?
Return of premium life insurance is a type of term life insurance that gives you back your money if you outlive the policy’s term.
ROP Rider Cost
The cost of a ROP rider can vary, based on the policy and the carrier. So, it is important to shop and compare before making a purchase.
Learn More: Average Cost of Life insuranceBelow is an example cost for a $250,000 - 30 year term policy, with and without a ROP rider added. The rates shown are for a non smoking, male at a preferred plus rate class.
Sample rates generated using our quoting platform across 30+ carriers as of March 2026. Actual premiums vary by health class, state, and carrier underwriting.
| Age | Without ROP Rider | With ROP Rider |
|---|---|---|
| 20 | $ 18.10 | $ 27.41 |
| 30 | $ 19.26 | $ 28.28 |
| 40 | $ 28.89 | $ 63.95 |
| 50 | $ 69 | $ 148.50 |
Best return of premium life insurance companies
There are several companies that offer a return of premium life insurance policy or riders. Some of the best companies are:
Assurity Life
Assurity Life Company provides two options for getting your money back. These include adding a return of premium rider on the company’s 20-year and the 30-year term life insurance coverage.
Cincinnati Life
Through Cincinnati Life Insurance Company, you can purchase a specific term life policy, the Termsetter ROP (Return of Premium). This level term policy offers coverage lengths of 20-years, 25-years, and 30-years.
Prudential
Prudential also offers a separate return of premium life insurance plan. With the ROP Term plan, you can obtain protection for 15, 20, or 30 years. Plus, with a level term policy, the amount of your coverage and rates are locked in for the entire life of the policy.
United of Omaha
United of Omaha has a rider that is available to add to its Term Life Express coverage. Here, you can obtain either a 20-year or a 30-year term life policy.
What are the pros and cons
There are both pros and cons to having a return of premium option on your life insurance policy. So, it is important to consider several factors.
Pros
First, this feature can allow you to get your insurance coverage for free - provided that you “outlive” the term of the policy. So, in the future - when the policy’s term has elapsed - you could end up with a nice lump sum of cash to use for your other financial needs, such as supplementing retirement income or paying off high-interest debt.
Cons
Yet, while it is nice to know that you could get your money back, in most cases, having the return of premium option will typically cost more money (as versus purchasing a policy without this option).
With that in mind, you should weigh out the added cost and the potential future reward before you purchase a plan.
How to get the best quotes
The best way to calculate quotes for a return of premium insurance policy - as well as to compare a variety of different policies - is to work with an independent agent like an Insurance Geek. That way, you can take a closer look at different coverage options, insurance carriers, and premium prices. From there, you can decide which will work the best for you and your coverage needs to protect your family.
Conclusion:
Everyone’s financial goals and objectives are unique. But with the right insurance coverage, you can essentially “customize” your protection for both your current and potential future protection needs.
At Insurance Geek, we’ve already done the legwork for you. We offer life insurance from more than 30 different carriers, so we aren’t locked into selling coverage from just one insurance company’s “shelves.”
We can provide you with side-by-side policy comparisons so you can see right up-front the type and amount of protection, as well as the amount of the premiums.
If you’re considering the purchase of this type of life insurance policy, it is possible that you can be covered for a long period of time, and get all of your money back down the road.
So, is a return of premium term life insurance policy right for you? Calculate quotes in the sidebar.
About Brad Cummins
Brad Cummins is the founder of Insurance Geek and primary author of its educational content. Licensed since 2004, he brings over 21 years of experience structuring life insurance and IUL strategies for clients nationwide.
Fact checked by Ryan Wood
Ryan Wood is a licensed insurance professional and contributing advisor at Insurance Geek, serving as a fact checker and technical reviewer for life insurance and annuity content. First licensed in 2013, he brings more than 12 years of experience and holds licenses in over 40 U.S. states.
