Return of premium term life insurance is designed to return 100% of the premiums you paid for life insurance, at the end of the initial policy period. A return of premium term life insurance with a 20 year term period will refund all the premiums paid at the end of the 20 year period. If the same policy is canceled before the end of the 20 year period, the refund will be prorated based on the return of premium schedule found in the policy.
The return of premium is paid in the form of a lump sum cash payment. The payment is tax-free based on the basic and widely accepted principal of taxation. You are encouraged to seek the advice of a competent legal or tax professional for further information on this topic.
Return of premium term life insurance can:
Refund all of your life insurance premiums, or
Provide a partial refund of premiums, and
Provide a Guaranteed Death Benefit

Cash-Out or Start a New Life Insurance Plan
The end of a return of premium term life insurance policy can be the start of a new life insurance policy without having to qualify for it. The new life insurance policy can be designed to provide a lifetime of life insurance coverage if you decide to continue life insurance coverage beyond the time limit of the original term life insurance policy. This new life insurance policy is made possible through a convertible term life insurance policy.