Return of premium (ROP)

A policy feature that refunds some or all of the premiums paid if you outlive the policy term or meet other conditions set out in the policy.

Reviewed by Kyle Garrett, licensed insurance advisorLast reviewed October 2026. How we write

In the context of life and living benefits insurance, “return of premium (ROP)” is a feature that refunds some percentage of (or all) premiums paid by the policyholder if they outlive the term of the policy or under specific conditions defined in the policy. This feature ensures that the policyholder receives a benefit even if they do not make a claim during the policy term.

Key aspects of return of premium (ROP) include:

  • Premium refund

    Provides a refund of some percentage of (or all) premiums paid.

  • Policy term

    Applicable if the policyholder outlives the policy term or under specified conditions.

  • Additional cost

    Often involves higher premiums due to the added benefit.

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