Likely if you are shopping for a term life insurance policy you have seen Return of Premium. A return of premium policy is a term life insurance policy usually 20 or 30 years in length that once completed will return your cumulative premiums.

If your premium is $175 per year your cumulative payments for a 30 year term policy is $5250. You will receive a check for the full amount paid of $5250 once the policy is up.

Unlike a whole or universal life insurance policy a return of premium's cash value does not increase or fluctuate, it acts a simple return on money.

How can life insurance companies offer return of premium policies? The return of premium policies often have higher premiums than standard term life insurance policies. A return of premium policy is a good option for young healthy individuals who will outlive a 20 or 30 year policy.

As with some term life insurance policies a return of premium policy has the option to be converted into a permanent life insurance policy such as a whole or universal insurance policy. Restrictions may apply depending on age of the insured and the type of policy but it does seem to be a good option for young individuals looking to get back what they put into their life insurance policy.