When you pay for life insurance, you’re hoping your family never actually needs to use the death benefit funds. That’s why Return Of Premium riders (ROP) are so valuable. This optional add-on lets you get back all the premiums you paid over the course of the policy if you outlive the term.

For example, Bob purchased a 20 year $500K term life policy with a return of premium rider when he was 40. He paid $100/month over those 20 years, totaling $24K spent in premiums. But at age 60 when the policy expired, Bob’s insurer sent him a check for the full $24,000 since he never needed to claim the death benefit.

Return of premium offers guarantees that if you outlive your term, you don’t lose the money you put in. Instead it can be used for retirement savings or living expenses. Having this rider gives you flexibility in case your finances change. You’re covered if the worst happens, but also get your money back if you end up not needing the life insurance down the road.