Millennials have traditionally been wary of purchasing life insurance, mostly because they have student debt, mortgages and other debt. Another factor is that the vast majority of term life policies don't pay out death claims because the insured outlives the policy. (Depending on who you ask, only about 1-3% of term policies actually pay out).
With this in mind, a great solution for younger people is Return Of Premium (ROP) term life insurance. Unlike traditional term life policies, ROP life insurance refunds 100% of paid premiums at the end of the term if no claim is made — essentially, “life protection if you need it, cash back if you don’t”. For millennials wary of “wasting money” on insurance they might never use, this structure reframes the purchase as a low-risk investment rather than a sunk cost.
As more millennials enter milestones such as marriage, homeownership, and starting families, the appeal of ROP term insurance grows. It allows them to plan for their family’s safety while viewing premiums as a form of deferred savings that can later be used for goals such as paying off a mortgage, funding a child’s education, or investing in retirement.
Millennials favor Return of Premium life insurance because it speaks to their desire for financial empowerment and dual-purpose value — protection today with guaranteed returns tomorrow. It’s a modern solution that transforms a traditional safety net into a confidence-building financial tool suited to their lifestyle and mindset.
If you have questions about ROP life insurance, visit our site and leave us a message OR schedule a short phone call. One of our agents will be happy to help you.
Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. Please subscribe to this blog!
