Ket takeaways
State Farm’s return-of-premium policy is a solid choice for those who want discounts for bundling with other types of insurance.
If you’re nervous about applying for life insurance, Cincinnati Life has an unusually transparent approach.
Illinois Mutual has a user-friendly site, but you’ll need to connect with an agent to buy coverage.
Reviewed monthly. Last updated: December 2025.
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 death benefit amounts, term lengths and state availability, as well as insurers’ financial strength and reputation among customers. All of the companies below scored at least 3 out of 5 stars.
The best ROP insurance policies of 2026
NerdWallet rating | Term lengths available | |
|---|---|---|
20 or 30 years. | ||
20, 25 or 30 years. | ||
20 or 30 years or to age 65. | ||
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. | ||
Best for discounts: State Farm
Male
$40 /month
Female
$34 /month
Why this insurer made the list: 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.
Rating Breakdown
Financial strength rating
Exceptional
Online purchase
No
NAIC complaints
Fewer than expected
Policies offered
Term, permanent & no-exam
About State Farm return-of-premium life insurance
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.
Policy name: Return of Premium Term Life insurance.
⏳Term lengths: 20 or 30 years.
Coverage amount: $100,000 to $250,000.
Age eligibility: 18 to 60.
Riders: You can add a child term or waiver of premium rider to your coverage for a fee.
Online experience: You can get a quote for standard term life insurance on State Farm’s site. But if you’d like to ensure you’ll get the ROP policy and any discounts you’re eligible for, connect with your local agent instead.
What to know about applying for a policy: To secure any type of term life insurance with State Farm, you may have to take a medical exam based on your answers to health questions.
Where this insurer stands out: State Farm offers a multi-line discount for anyone who has auto insurance with the company and purchases a return-of-premium life insurance policy.
» Read the full review: State Farm life insurance
Best for transparency: Cincinnati Insurance
Why this insurer made the list: Cincinnati Life stands out for giving applicants access to their life insurance underwriter via phone or email, which is a rare offering.
Rating Breakdown
Financial strength rating
Exceptional
Online purchase
No
NAIC complaints
Fewer than expected
Policies offered
Term & permanent
About Cincinnati Life’s ROP life insurance
The insurer doesn’t list a maximum coverage level. Instead, the amount of coverage you can buy depends on your age and the reason for purchasing a policy. Cincinnati Life also offers a transparent application process with an underwriting professional on hand to answer questions.
Policy name: Cincinnati Life Termsetter ROP.
⏳Term lengths: 20, 25 or 30 years.
Coverage amounts: $25,000 to over $1 million.
Age eligibility: 18 to 60.
Riders:
Accelerated death benefit.
Child term.
Accidental death.
Waiver of premium.
Online experience: Cincinnati Insurance’s site doesn’t have many life insurance policy details, so you’ll need to connect with the company if you'd like to learn more about the ROP policies offered.
What to know about applying for a policy: Some ROP applicants are eligible for accelerated underwriting, which skips the medical exam. The insurer is lenient toward non-cigarette tobacco users when it comes to setting rates.
Where this insurer stands out: 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.
Best user-friendly policy: Illinois Mutual
Why this insurer made the list: It’s quick and seamless to get a quote online with Illinois Mutual, and agents are available for follow-up questions.
Rating Breakdown
Financial strength rating
Strong
Online purchase
No
NAIC complaints
Far fewer than expected
Policies offered
Term & permanent
About Illinois Mutual ROP life insurance
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. However, the policy isn’t available in Alaska, Hawaii, Montana, New York or the District of Columbia.
Policy name: Path Protector Plus® Return of Premium Term Life Insurance.
Term lengths: 20 or 30 years or up to age 65.
Coverage amounts: $50,000 to $500,000.
Age eligibility: 18 to 60.
Riders:
Accelerated death benefit.
Other insured term.
Child term.
Online experience: Illinois Mutual makes shopping for life insurance online easy, with quick quotes available for return-of-premium term policies. The company also offers video explainers and helpful examples of situations that would benefit from certain kinds of life insurance.
What to know about applying for a policy: Depending on your answers to health questions and your prescription history, you may qualify for a simplified application process without a medical exam.
Where this insurer stands out: Although you can’t convert this term life policy to permanent life insurance, Illinois Mutual does allow you to renew a return-of-premium term policy annually up to age 95.
These companies allow you to add a return-of-premium rider to specific policies. You can expect to pay higher premiums if you opt in to this coverage.
Company | Policies eligible for ROP rider |
|---|---|
AAA | 15-, 20- or 30-year term life insurance. |
Country Financial | 20- or 30-year term life insurance. |
Foresters Financial | Accidental term life insurance. |
Guardian | 15, 20 and 25 policy years in universal life insurance. |
John Hancock | 25- and 30-year Simple Term with Vitality. |
Pacific Life | 15, 20, 25 and 35 policy years in guaranteed universal life insurance. |
How we rate the best life insurance companies
✅ 445 life insurers reviewed
📝 210 policies assessed
🔢 1,515 data points analyzed
📊 Star rating categories
When NerdWallet evaluates life insurance companies, our editorial team considers the insurer's strengths and weaknesses, as well as the things that matter most to customers buying a long-term financial product. We then weigh these factors carefully:
💰 Financial strength (35%). We use AM Best ratings to confirm an insurer’s financial stability and ability to pay claims far into the future. The top life insurance companies have an exceptional financial strength rating of A+ or A++ (Superior).
🗣️ Consumer complaints (35%). Our top-rated life insurance companies have fewer than the expected number of complaints to state regulators over a three-year period, according to the National Association of Insurance Commissioners — so you can expect a smoother customer experience.
☎️ Consumer experience (20%). Insurers who allow consumers to contact them by email, phone and live chat earn the highest scores. The same goes for insurers who support online quotes, beneficiary changes and claims.
👀 Transparency (10%). Our methodology gives higher scores to transparent insurers who clearly display information about their policy options, coverage amounts and term lengths (if applicable) on their site.
⭐ What our star ratings mean
Companies with 5 stars are exceptional, with strong financials, diverse policy lineups and great reputations for customer service.
Companies with 4.5 stars are excellent, with solid financials and policy offerings, and good customer service track records.
Companies with 4.0 stars are good, and potentially great for people looking for niche coverage options.
Companies with 3.5 stars or fewer could do better in certain categories, like financial strength and customer complaints.
NerdWallet does not receive compensation for our star ratings or our reviews. Read more about our life insurance ratings methodology and editorial guidelines.
What is return-of-premium life insurance?
Return-of-premium is a feature or rider added to an insurance policy that gives policyholders a refund of the premiums paid if they outlive their term.
When you buy a stand-alone ROP life insurance policy, you’ll choose 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.
» MORE: Is life insurance taxable?
How much does return-of-premium life insurance cost?
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 three to 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 nonsmokers in excellent health, courtesy of Cincinnati Life.
Age of applicant | Annual rate for men | Annual rate for women |
|---|---|---|
20 | $820 | $575 |
30 | $865 | $580 |
40 | $1,510 | $1,290 |
50 | $4,305 | $3,470 |
60 | $11,455 | $8,725 |
Source: Sample rates are for Cincinnati Life and are valid as of December 9, 2025. | ||
ROP life insurance pros and cons
Pros
- Premiums are reimbursed if you outlive the policy.
- Refunds aren’t taxed as income.
- ROP policies can build cash value.
Cons
- More expensive than regular term life insurance.
- Won’t get any money back if your policy lapses.
Is return-of-premium life insurance worth it?
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.
» MORE: Average life insurance rates
Frequently asked questions
Is return-of-premium lie insurance taxable?
Is return-of-premium lie insurance taxable?
Generally, no and it’s for the same reason other types of life insurance aren’t considered taxable. The IRS considers life insurance proceeds, including death and ROP benefits, to be a return on the premiums you’ve paid and therefore not categorized as taxable income.
What's the downside of return-of-premium insurance?
What's the downside of return-of-premium insurance?
ROP policies have the same disadvantage of many cash value life insurance offerings. Often, the additional money you’ll pay in premiums would earn more interest if you invested or saved the same amount in a high-yield savings or money market account instead.
What type of life insurance offers a return of your premiums?
What type of life insurance offers a return of your premiums?
Most return-of-premium coverage is an add-on to term life insurance. In some cases, you may find return-of-premium riders on universal life insurance policies.
For instance, Guardian, one of our best life insurance companies of 2026, has a return-of-premium rider available for universal life insurance that offers exit points where you can surrender your policy and get a portion of your premiums back.
