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3 Best Return-of-Premium Life Insurance Policies in March 2023
Compare top-rated companies that offer life insurance with a money-back guarantee.
Katia Iervasi Lead Writer/Spokesperson | Life insurance, disability insurance, health care
Katia Iervasi is a lead writer and spokesperson at NerdWallet, where she focuses on insurance and manages our “best of” life insurance pages. She holds a B.A. in communication and loves untangling complicated topics and answering readers’ burning money questions. Her writing and analysis has been featured in The Washington Post, Forbes, Yahoo, Entrepreneur, Best Company and FT Advisor. Originally from Sydney, Australia, Katia currently lives in New York City.
Lisa Green Assigning Editor | Insurance, data journalism
Lisa Green leads the life insurance team and oversees insurance-focused data journalism at NerdWallet. A professional journalist since high school, she was an insurance writer at NerdWallet before becoming an assigning editor. Previously, Lisa spent more than 20 years as an editor at The Tennessean in Nashville, where she led business and consumer coverage for several years. At The Tennessean, she was part of a 2011 Pulitzer Prize finalist team for coverage of devastating floods in Middle Tennessee. Her work has also won awards from the Society for Advancing Business Editing and Writing, Investigative Reporters and Editors, and the Society of Professional Journalists. Lisa is an alumna of the Wharton Seminars for Business Journalists at the University of Pennsylvania. She has also studied data journalism with the National Institute for Computer-Assisted Reporting, business editing with the American Press Institute and writing, editing and news research with the Poynter Institute. In addition to her work at NerdWallet, Lisa is a real estate investor and has taught a seminar on how to earn college scholarships. She is based in Nashville.
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An insurance policy generally isn’t something you can return for your money back. But there’s one exception: return-of-premium life insurance.
Also known as ROP life insurance, this type of coverage reimburses you for the money you paid in premiums if you don’t die during the term. Some insurers offer it as a stand-alone policy, though it’s commonly sold as a rider that can be added on to a life insurance policy.
This list focuses on return-of-premium policies that are sold separately. To narrow down the list, we looked at coverage amounts, term lengths and state availability, as well as insurers’ financial strength and reputation among customers.
Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure the content on our site is accurate and fair so you can make financial decisions with confidence and choose the products that work best for you. Here is a list of our partners, and here’s how we make money.
Our picks for the best return-of-premium life insurance companies in March 2023
All of the companies listed below scored at least 3 out of 5 stars. While return-of-premium is an uncommon product, it’s a good idea to compare life insurance quotes from at least two companies before making a decision.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet rates insurers at the company level, not the policy level. This means our star rating reflects the company as a whole, and not its ROP insurance policy specifically.
How we ranked the top life insurers
NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.
These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
How we review life insurance companies
In our life insurance reviews, our editorial team considers the customer and the insurer. These are some of the factors we take into account:
Policies offered. There are many types of life insurance on the market, and they fall into three key categories:
Term life insurance offers temporary coverage and a guaranteed payout if the policyholder dies during the term.
Permanent life insurance typically lasts a lifetime and builds cash value that can be borrowed against in the future.
No-exam life insurance issues coverage without the need for a medical exam.
Financial strength. We use AM Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. For life insurance, NerdWallet typically recommends considering insurers with ratings of A- or higher. Here’s the breakdown:
Exceptional: A+, A++.
Strong: A-, A.
Moderate: B, B+.
Complaints. These ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. The best life insurance companies have fewer than the expected number of complaints.
Buy online. This indicates whether an insurer allows you to apply for and buy a policy completely online.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: If you have a State Farm auto insurance policy, purchasing a ROP policy with the company may earn you a discount on your car insurance premiums.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term, permanent & no-exam
Pros
State Farm ranked No. 1 for customer satisfaction in J.D. Power’s 2022 U.S. Individual Life Insurance Study.
Cons
Not available in Massachusetts.
If you’re looking for an insurer that will let you bundle — and save — on auto and life insurance, State Farm is likely a solid choice. The insurance giant stands out for its customer service and attracting few complaints, and sells return-of-premium policies starting at $100,000.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: If you have a State Farm auto insurance policy, purchasing a ROP policy with the company may earn you a discount on your car insurance premiums.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term, permanent & no-exam
Pros
State Farm ranked No. 1 for customer satisfaction in J.D. Power’s 2022 U.S. Individual Life Insurance Study.
Cons
Not available in Massachusetts.
If you’re looking for an insurer that will let you bundle — and save — on auto and life insurance, State Farm is likely a solid choice. The insurance giant stands out for its customer service and attracting few complaints, and sells return-of-premium policies starting at $100,000.
Overview: Open to applicants from 18 to 60 years old, State Farm’s return-of-premium life insurance policy offers coverage starting at $100,000. Depending on your age, you can buy a policy lasting 20 or 30 years. If you’d like to convert your policy to permanent life insurance, you can do so up to age 75.
State Farm allows you to add a children’s term life insurance rider to your policy, as well as a waiver of premium rider, which pauses your premiums if you become disabled and can’t work for a period of time.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & permanent
Pros
Applicants can contact their life insurance underwriter directly.
Cons
Not available in New York.
Customers looking for more insight into their policy should consider Cincinnati Life, which provides direct access to an underwriter. The insurer also offers accelerated underwriting for return-of-premium policies if you qualify.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: Cincinnati Life stands out for giving applicants access to their life insurance underwriter via phone or email, which is a rare offering.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & permanent
Pros
Applicants can contact their life insurance underwriter directly.
Cons
Not available in New York.
Customers looking for more insight into their policy should consider Cincinnati Life, which provides direct access to an underwriter. The insurer also offers accelerated underwriting for return-of-premium policies if you qualify.
Overview: Available in 20-, 25- and 30-year terms, Cincinnati Life’s Termsetter ROP policy can be customized with multiple life insurance riders. These include an accelerated death benefit rider that allows you to tap into your policy’s payout while you’re still alive if you’re diagnosed with a terminal illness. You can convert all or part of your coverage to permanent life insurance after your 70th birthday. The insurer doesn’t list a maximum coverage level; rather, the amount of coverage you can buy depends on your age and the reason for purchasing a policy.
Typically, underwriters work behind the scenes and don’t communicate with customers directly, but Cincinnati Life connects policyholders with its underwriters via phone and email. This access is helpful if you have questions after you’ve submitted your application. Some ROP applicants are eligible for accelerated underwriting, and the insurer is lenient toward non-cigarette tobacco users when it comes to setting rates.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Strong
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & permanent
Pros
Sleek online experience.
Cons
Limited policy information on insurer’s site.
Illinois Mutual sells up to $500,000 of coverage in return-of-premium life insurance for most applicants, and has a user-friendly website. Applicants can add an accelerated death benefit rider to their coverage, which allows you to tap into your payout if you become seriously ill.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: It’s quick and seamless to get a quote online, and agents are available for follow-up questions.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Strong
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & permanent
Pros
Sleek online experience.
Cons
Limited policy information on insurer’s site.
Illinois Mutual sells up to $500,000 of coverage in return-of-premium life insurance for most applicants, and has a user-friendly website. Applicants can add an accelerated death benefit rider to their coverage, which allows you to tap into your payout if you become seriously ill.
Overview: Illinois Mutual’s return-of-premium policy is straightforward. If you’re 18 to 60 years old, you can buy up to $500,000 in coverage, and add an accelerated death benefit rider to your policy.
Illinois Mutual ROP policy details
Policy name: Path Protector Plus Return of Premium Term.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
Some hybrid life insurance and long-term care policies.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
15-, 20- or 30-year term life insurance.
How does return-of-premium life insurance work?
When you buy a stand-alone return-of-premium life insurance policy, you’ll select a term length, such as 20 or 30 years. If you die during that time, your life insurance beneficiaries receive the death benefit. But if you don’t, you’ll get a refund of the premiums you paid, without interest — though your insurer might subtract the cost of administrative fees and similar charges. The money you get back isn't taxable, as it’s simply a refund of the payments you made.
To compare, with regular term life insurance, you won’t receive any money if you’re still alive when the policy expires.
ROP life insurance is an interesting product because it’s a term life policy, but it builds cash value over time. Once you’ve accumulated enough cash value, you can borrow against your policy, withdraw the money or surrender the policy for cash if you no longer need coverage.
What’s the catch with return-of-premium life insurance?
The money-back feature comes with a higher price tag. Let’s say you’re a healthy 40-year-old looking to buy a 20-year, $500,000 policy. You can expect to pay nearly five times as much for a return-of-premium policy compared with a standard term life insurance policy without ROP benefits.
Sample rates for return-of-premium life insurance
These are sample rates for a 20-year, $500,000 return-of-premium life insurance policy for super preferred applicants. These are nonsmokers in excellent health.
Age of applicant
Annual rate for men
Annual rate for women
20
$995
$760
30
$1,075
$780
40
$1,605
$1,450
50
$4,120
$3,390
60
$11,635
$8,990
Source: Quotacy. Rates are for Cincinnati Life and are valid as of December 7, 2022.
It depends on your budget and how you’re fitting life insurance into your overall financial plan.
For most people, a standard term life insurance policy is sufficient. With this approach, you could put the money you don’t spend on a return-of-premium benefit aside into a high-interest savings account, or invest it.
If you’re not comfortable with the idea of paying into a life insurance policy that may expire, and you can afford the pricey premiums, consider ROP. Just be sure to pay your premiums on time and avoid canceling your policy, as you might not get your money back.
NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.
These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
