It seems like a deal that�s too good to be true: Pay premiums on your term-life insurance policy, then get them all back if you don�t die during the 10, 20 or 30 years you are covered. It�s like getting insurance for free.
But like most too-good-to-be-true deals, this one isn�t quite as good as it appears. Most people can do better with a standard term policy. So-called return-of-premium options were devised a number of years ago to boost sales of term policies, the simplest and least expensive type of life insurance. With term, the policy holder pays an annual or semiannual premium in exchange for a death benefit for survivors.