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.
Return of premium is a term life insurance option—see the hub for standard term lengths, underwriting, and how level term works before you compare ROP pricing.
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. Standard term without the refund rider is usually cheaper—compare both on our types of life insurance overview before you decide.
ROP Rider Cost
The cost of a return of premium rider varies by policy and carrier. Shop and compare before you buy.
See our term life insurance rates by age chart for how carriers price term coverage by age and health class.
Below 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 |
Compare return-of-premium rates
See return-of-premium vs regular term on the same face amount and term length.
Best return of premium life insurance companies
There are several companies that offer return of premium term or a return of premium rider. Carriers we often compare include:
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 term plan. With the ROP Term plan, you can obtain protection for 15, 20, or 30 years. Level term locks your coverage amount and rates for the entire policy term.
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?
Pros
- Premiums refunded if you outlive the term—guaranteed, not market-dependent
- Same death benefit protection as standard term during the policy years
- Useful for buyers who will not invest the premium difference on their own
- Can feel like forced savings when the alternative is spending the gap
Cons
- Typically costs 30–50% more than standard term for the same face amount
- No cash value or investment growth during the term
- Opportunity cost—premium difference may outperform the refund if invested
- Fewer carriers offer ROP than standard term—less shopping leverage
How to get return of premium quotes
Work with an independent agent at Local Life Agents who can compare ROP and standard term side by side across 30+ A-rated carriers. That lets you see the real premium uplift for your age and health class—not a generic percentage from a marketing brochure.
Conclusion
Return of premium term is a behavioral product as much as an insurance product. If you will invest the premium difference between standard term and ROP, standard term usually wins on math. If you will not, the guaranteed refund has value. We run both illustrations on the same face amount and term length so you decide with numbers, not slogans.
Our agents shop 30+ A-rated carriers for ROP and standard term on identical assumptions. One targeted application to the carrier whose guidelines fit your profile beats stacking applications and hoping for the fastest approval.
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