One common thought on the whole term life insurance vs whole life insurance debate is the fact that whole life grows a cash value. This means that whole life has a surrender value, and may even be able to be used in a life insurance settlement transaction. Term lasts for a period of time, and if it is not used, it expires.

But there is one rider (addition) that can be added to some term policies to make them more attractive to consumers who are doing some long term planning. This is called a return of premium (ROP) rider. It costs a bit more, but in return, it will refund all premiums if no claims are made against the policy. This is a way to get one last benefit out of an expired policy – a big check in the mail!

There are some conditions. The policy must be kept in force (paid for) for the term to collect the full benefit. In general, no claims can be made against the policy. i.e. if it pays out a death benefit, it will not pay out a return of premium. Get more information on how ROP term life works.