Best Return-of-Premium Life Insurance for 2025

Best Return-of-Premium (ROP) Life Insurance for 2025

If you’re seeking a life insurance policy that offers a return of your premiums, you’ve come to the right place. Return-of-premium life insurance is a special type of term life insurance that not only provides a death benefit, but also refunds the premiums you’ve paid if you outlive the policy. While this type of coverage is more expensive than standard term life insurance, the potential to recoup your payments makes it an appealing option for many. In this guide, we highlight the best ROP life insurance companies, considering factors such as cost, coverage options, customer satisfaction, and financial strength.

What is Return-of-Premium Life Insurance?

Return-of-premium (ROP) life insurance is a unique variation of term life insurance. With ROP, you’ll receive a refund of all the premiums you’ve paid at the end of the policy term, provided you’re still alive. It’s often offered as a rider on a regular term life insurance policy. This added feature naturally increases the cost compared to a standard term life policy. However, the ability to receive your money back at the end of the term offers a financial benefit beyond simple life insurance.

Several considerations go into rating ROP providers. We assessed companies based on:

• Premium costs
• Available terms and riders
• Customer satisfaction
• Financial stability

Below, we’ll address the top ROP providers.

Top ROP Life Insurance Providers

Based on our rigorous analysis, here are our top picks for return-of-premium life insurance in 2025:

Best Overall & Best for Living Benefits: Assurity

Best for Financial Strength & Customer Satisfaction: State Farm

Best for Low Premiums & Choice of Terms: AAA Life Insurance

Why Trust Us: Our Methodology

Investopedia’s objective reviews and rankings are the result of thorough research by expert staff and editors. For our list of the best return-of-premium term life insurance providers, we gathered data points from six insurers that provide the product and that meet our minimum standards, including parameters for online transparency and financial strength, and customer complaint ratings. Our evaluation process incorporates both quantitative and qualitative analysis, scoring companies on key categories like coverage, policy features, costs, customer satisfaction, financial stability, and online services.

Company Reviews

Assurity: Best Overall and Best for Living Benefits

Financial Strength Rating: A-

Why We Chose It: “Assurity is the top choice for its extensive benefits, including living benefits, competitive pricing, and large coverage limits. Plus, applying for a policy is easy with their online application.”

Pros:

• Three living benefit riders are available (one at no extra cost)
• Relatively low premiums
• Large coverage limits
• Online quote and application
• Instant decisions possible for certain policies

Cons:

• Mediocre complaint record
• Financial strength rating less impressive than competitors.

Assurity is often considered the best ROP life insurance provider. Their ROP premiums were the second-lowest we saw, just slightly higher than AAA’s. Policy limits range from $25,000 to as much as $10 million. Assurity stands out because they offer valuable living benefits; two accelerated benefit riders are included at no additional cost. These riders allow you to access your policy’s death benefit if you face a serious illness. They also offer terminal, chronic, and critical illness riders, which means you can use your death benefit to fund care if you need it.

Assurity’s commitment to social equity and the environment is further demonstrated by its B corporation certification.

State Farm: Best for Financial Strength and Customer Satisfaction

Financial Strength Rating: A++

Why We Chose It: “State Farm earns its place because of its solid financial foundation and high customer satisfaction. Its ROP policy has no official limit on the death benefit based on income.”

Pros:

• Largest maximum death benefit among ROP providers we researched
• Permits loans against the ROP cash value before term’s end
• Robust customer satisfaction metrics
• Highest financial strength rating from AM Best

Cons:

• Mid-range pricing
• Limited rider selection
• No online quote available

State Farm’s return of premium term life insurance has terms of 20 or 30 years. You can renew the policy annually at increasing rates, up to age 95, and there’s no stated coverage limit. If you need funds before the policy ends, you can borrow against the ROP cash value built from your premium payments. State Farm has the highest financial strength rating (A++) among these companies, assuring long-term payout capabilities. Additionally, they consistently rank highly in customer satisfaction surveys.

AAA Life Insurance: Best for Low Premiums and Choice of Terms

Financial Strength Rating: A

Why We Chose It: “AAA Life Insurance is the best option for the lowest premiums. The company also offers a wider selection of term lengths than competitors.”

Pros:

• Lowest premiums among ROP providers we researched
• Relatively wide range of terms available
• Comparatively large maximum death benefit
• Possible instant decisions for certain policies

Cons:

• Poor customer satisfaction metrics
• Limited rider selection
• No online application for ROP term life insurance

AAA offers the lowest premiums for return-of-premium life insurance. To get the ROP rider, you must buy a Traditional Term Life Insurance policy from AAA. Policies come in 15-, 20-, and 30-year terms, which is a wider range than competitors. Coverage can range from $50,000 to $3.5 million. You can convert to a permanent policy right up until the initial policy term ends or the policy anniversary after your 65th birthday. If your policy is for $200,000 or less, you may be able to bypass a medical exam and get an immediate decision. But, AAA’s customer complaint record merits consideration. State regulators received more customer complaints than expected for a company of its size.

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