Look out, it’s the return of premium term life insurance!

No, it’s not a movie title. It’s just a fact: the return of premium term life insurance has come. Though it’s not actually a return so much as a type o’ insurance policy that you should be aware of.

Term policies don’t cost as much as complete life policies because there’s a strict restriction that goes along with them: if you don’t die by the end of the term then the premium (probably more than just one premium, actually, given how many years a term typically lasts) then the money paid towards that premium is gone. Poof. Kaput. You don’t get anything back out o’ it aside from a notice that says you must renew your life term. There’s no return whatsoever.

Return of premium term life insurance is different. Of all the insurance types you could go for in regards to terms policies it is probably the best because it combines the best of two worlds: it allows you to pay less than a full term policy (as in, covering your entire life) while simultaneously being given the assurance that, at the end o’ each term, you’ll receive at least a partial return on the premiums you’ve paid for.

Bear in mind that this kind of insurance isn’t for everybody. Even though they are typically cheaper than full life coverage, it will still cost more than any o’ the myriad terms policies available on the market. Still, if you’re healthy as an ox and think your life will extend long past the end o’ the terms, then by all means try it out and attempt to get a return on your premiums. It may work out to your advantage in the end, and the lump sum o’ money you collect once the time of the policy is up can go to any number of things, from tuitions to trips to investments. And all the while you’re planning for that lump sum you can rest knowing your family is protected from your sudden death, should it happen.