Are you trying to decide if you should buy term life or whole life insurance? This decision can be tough when you consider the advantages and disadvantages of permanent vs temporary policies.

We know that term is usually cheaper. That is because it does expire after a time period, and because it does not normally grow any cash value. It is considered pure insurance.

But on the other hand, whole life covers us through our entire lives. As long as we keep the policy in force, it will provide coverage on our lives. It also can build up a cash account or cash value. This can be borrowed against, cashed in, or used in senior life settlements. This makes whole life attractive too.

But life insurance companies have come up with another rider (option) you can put on term to make it more attractive. This is called a return of premium (ROP) rider. This option will actually pay the policy owner all the premiums back if the policy does not have to pay on a claim.

Consider an example. Mr. White bought a thirty year, $500,000 policy. He survived to the end of it. While he must be happy to be alive, he does not get any more benefit from his coverage.

But if he choose to purchase the Return of Premium benefit, for a little more money, he can actually get a check back for all of the premiums he paid.

Understand that the policy will either pay out a benefit or it will refund premiums. If the insured person would pass away in year 8 of the policy, and a spouse or child collected, then there would be no premium refund.

Still, this makes term with ROP attractive to many people. They get the lower term premiums, but with just a little more added to their premium, they can get their money back at the end. I still cannot tell you if this is the choice you should make. Your own situation is unique. But I think that many people would take this option if they knew about it.

We can help you find term life with ROP in your city or town. You need to make an informed choice, and find the best types of life insurance for you.