Return of Premium Rider
A return of premium rider can give you confidence knowing that you will receive money if you outlive your term life insurance policy. This rider is designed to pay back all or most of the premium payments you made during the course of your life insurance policy, turning your term life insurance policy into a defacto savings account.
Free Life Insurance Comparison
Secured with SHA-256 Encryption
UPDATED: Feb 26, 2021
It’s all about you. We want to help you make the right life insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.
Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from top life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
- Term life insurance policies expire at the end of a set term, so it is possible to outlive your life insurance policy
- Return of premium riders are designed for people who outlive their life insurance policies
- This type of insurance rider pays you back a portion or all of your premium payments in the event you outlive your policy
A return of premium rider is a common facet of life insurance policies. Riders give you the ability to customize your term life insurance or whole life insurance policy.
Return of premium life insurance policies help incentivize good health choices and can act as another type of savings. The return of premium rider ensures that you get some or all of your money back if you outlive your life insurance policy.
Let’s take a closer look at the return of premium riders traditionally offered by life insurance companies and explain it in more detail.
If you’re ready to buy life insurance with a return of premium rider, enter your ZIP code above to compare life insurance rates with a return of premium rider.
How does the return of premium rider work?
When you buy a term life insurance policy, it has a set period or term. Typically, these terms last anywhere from 10 to 30 years. You make premium payments every month or annually for your life insurance coverage.
Term life insurance is popular because it is generally one of the cheapest and most comprehensive types of life insurance you can get.
|Age and Gender||$250,000 Policy Average Monthly Life Insurance Rates||$500,000 Policy Average Monthly Life Insurance Rates||$750,000 Policy Average Monthly Life Insurance Rates||$1 Million Policy Average Monthly Life Insurance Rates||$2 Million Policy Average Monthly Life Insurance Rates|
Get Your Rates Quote Now
What happens if your term ends, but you are still alive? This is where your return of premium rider kicks in. With this rider in place, if you outlive your term life insurance policy, your insurance company will refund or return all or most of the premium payments that you made during the duration of your policy.
The exact details of how much of your premium payments your life insurance company will return to you depend on the company you choose and the language of your return of premium rider.
Enter your ZIP code below to compare cheap life insurance rates.
Secured with SHA-256 Encryption
What type of insurance would be used for a return of premium rider?
The return of premium rider will only be offered to people who are buying term life insurance policies. These policies have expiration dates, whereas whole life insurance policies have no expiration date and last for the duration of a person’s life.
The Insurance Information Institute has more helpful information regarding the different types of life insurance policies and the differences between them.
What is the advantage of a return of premium rider?
A return of premium rider offers you a savings component to your term life insurance policy. Typically, term life insurance carries no cash value, but with a return of premium rider, you could potentially get cashback.
If you’re ready to compare term life insurance quotes with a return of premium rider, enter your ZIP code below.