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Return of Premium life insurance is an excellent type of policy, especially if you are looking to purchase a 20 or 30 year term policy.  The way return of premium works is that at the end of the term period, if you are still alive, the life insurance company will return to you all of the premiums you have put into the policy.  This is great for you, because it can then be used to fund a different type of policy, or you can just pocket the money.

The only thing that may be a potential downfall with this type of policy is that it costs about three times more.  So if you have extra cash now, it may the type of policy for you.  But if you do not, then a regular term policy is probably the best one to go with.

The reason I wouldn’t necessarily suggest getting an ROP policy for a shorter term is that you can often make more money on your investment by paying for a regular term policy and then investing the difference.