Indiana Farm Bureau Insurance inside story blog logoIndiana Farm Bureau Insurance Inside Story Blog Logo

by Indiana Farm Bureau Insurance

Investopedia Review – Best Return of Premium life insurance coverage 2021

Father and daughter in the living room dancing with the father twirling the daughter around in a tutu

In 2021, Indiana Farm Bureau Insurance was recognized by Investopedia for having one of the best Return of Premium life insurance products for consumers. Investopedia is one of the largest web-based resources for information in finance, investments and the economic industry. Indiana Farm Bureau Insurance’s life insurance division has also been recognized with high marks by AM Best Rating Service.  

Return of Premium_Investopedia_Image1

Return of Premium_Investopedia_Image2

Return of Premium_Investopedia_Image3

Since 1899, AM Best has garnished a dependable reputation as a credit rating agency that focuses exclusively on insurance companies across the globe. Companies with a strong ability to meet their financial obligations receive high ratings, giving customers the opportunity to observe an insurance company’s financial strength.  


We are honored to be recognized by Investopedia, and we are proud of our employees and agents who have helped with developing insurance policies that individuals can rely on. We don’t just offer one type of life insurance policy at Indiana Farm Bureau Insurance; we offer you and your family flexibility to find what is best for your future and their future.  


What is Return of Premium life insurance?  


A Return of Premium life insurance policy offers protection for either 20 or 30 years; you select how long you need the coverage. We will return your premium back after 20 or 30 years. Or, after year 20 or 30, you will have the option to never have to pay another premium and have a reduced, paid-up life insurance policy. 


Another benefit of this life insurance policy is that the cash value amount is guaranteed to be there at the end of 20 years. * There is no risk in this policy; as long as you continue to pay the premium, you will receive the cash surrender value equal to the premium paid, income tax-free! **  


Return of Premium life insurance policies are unique and can be customized to meet your specific situation. Want more information about a Return of Premium life insurance policy? Find an agent or contact your Indiana Farm Bureau Insurance agent to learn more.  


When asked about life insurance, most individuals are aware that if they pass away their beneficiary will receive the life insurance proceeds. But the question that many people may be thinking is, “What happens if I don’t prematurely die? What’s in it for me?”  

We call it life insurance for a reason. The Return of Premium life insurance policy provides you with multiple living benefits, as well as death protection in the event of a premature death.  


A real-life testimony to a Return of Premium life insurance policy 


One policyholder shared this story with one of our Indiana Farm Bureau Insurance agents when discussing a Return of Premium life insurance policy:  

“I asked my friend why he purchased a Return of Premium life Insurance policy from his Indiana Farm Bureau Insurance agent, and the answer amazed me. He said, ‘So I can go to Scotland when I retire. That has always been my dream, the #1 item on my bucket list is to play golf in Scotland!!’ I asked how buying life insurance for your family in case you die helps you get to Scotland.  

My friend shared that the Indiana Farm Bureau Insurance agent explained that life insurance has living benefits that guarantee if he does not unexpectedly pass away, after 20 years he will get all the money paid into the policy back! In 20 years, he will be 63 years old, and is guaranteed to receive $41,150 cash value income tax free (all 20 annual premiums back), and a large portion of that tax-free lump sum income is what he plans to utilize for his 2-week trip to Scotland! 

He went on to share how much he loved his family. He explained that purchasing a $250,000 life policy for them if he dies adds peace of mind. However, it also guarantees that if he doesn’t prematurely die that he will reward himself by purchasing this type of policy.   

With a Return of Premium policy, he could go to Scotland as a result of the same decision he made to protect his family. Knowing how he will benefit as he takes care of and loves his family, no matter the situation, made the experience of purchasing life insurance unique.” 

Life insurance can provide income for your loved ones if you die. However, just like the individual above plans, the Return of Premium life insurance policy guarantees that you can utilize the living benefits of life insurance for yourself! With a Return of Premium life insurance policy, you can be the beneficiary of your life insurance policy. 

How do you want to utilize your living benefits and at the same time provide protection for your beneficiary?   


Did you know that a Return of Premium life insurance policy can provide you with living benefits? 

Typically, there are four living benefits to life insurance that pay you back. These living benefits could include: 


  • Cash accumulation that can supplement your income as a lump-sum distribution, monthly income or a combination of both. 

  • If, later in life, you need less life insurance than initially required, you can request that your policy become reduced paid-up life insurance. Reduced paid-up life insurance is designed with a guarantee that you will never have to pay another premium. 

  • You may also opt-in to a combination of both and receive a cash value to supplement your income and a reduced paid-up life insurance policy. 

  • If the insured is diagnosed as terminally ill, they can receive almost all of their life insurance death benefit while they are still alive. 



Who qualifies for a Return of Premium life insurance policy?  


If you seek coverage for a specific time-period and would like to receive your return of premium, this is the product for you. If you are 18-60 years old, our Return of Premium policy will appeal to you. Here are some qualifying criteria for our 20- and 30-year Return of Premium products. 


Issue Ages for our Return of Premium products: 


  • 20-Year: Non-Tobacco User: ages 18-60; Tobacco User: ages 18-45 

  • 30-Year: Non-Tobacco User: ages 18-50; Tobacco User: ages 18-45 

How can I get a Return of Premium life insurance policy?  


The advantage Indiana Farm Bureau Insurance provides is that we have a local insurance agency and at least one office in every county in Indiana. This provides you with access to insurance agents nearby who will work with you in determining what’s right for you.  


Our agents have tools to assist you, such as a needs analysis and life insurance calculator, to discuss the best fit for your individual or family situation. When our local insurance agents work with you on your solution, you can have peace of mind. Whether the best option is term life insurance, return of premium, whole life or some other insurance option, our agents are here to serve you. Find an agent to receive your free quote today! 


Insurance does not have to be confusing; you should understand what your insurance is covering and how it will cover you. Speak with an Indiana Farm Bureau Insurance agent today and find out if a Return of Premium life insurance policy is right for you!  

Once again, we would like to thank Investopedia for this honor of recognizing Indiana Farm Bureau Insurance as one of the best Return of Premium life insurance policies. Our company is not only about insurance, but also about getting you and your family the right coverage to protect you when the unexpected happens.  

* Cash value at the end of the 20th or 30th year is equal to 20 or 30 times the initial annual base premium (plus policy fee), regardless of how premium is paid. Any additional premiums paid for riders or benefits will not be returned at the end of the term period. If a material change (such as death benefit or tobacco class change) is made, cash values will be re-calculated.  

** Tax free return is limited to premiums paid.