There is a relatively new type of product shoppers are encountering when looking for term life insurance, so I wanted to address it while it is in its infancy. This new type of insurance policy is called Return of Premium Term Life Insurance and it is exactly what it sounds like. Return of Premium is a hybrid policy that gives the insured specific term coverage, but also a return of investment if they outlive their policy.

In order to take a closer look at who and what versions of Return of Premium Term Life Insurance are being offered, I fired up my Term Insurance New York page and put in my zip code.

My interest is first and foremost anything that has to do with Florida term life insurance policies, but then I look at other states to see what offers and incentives are out there beyond my state's borders. That gives me a good indication how competitive the pricing is for Florida term life insurance compared to the rest of the country.

I will say that through TerminsuranceNewYork.com I found quite a lot of information about Return of Premium term products. I was particularly interested in what AIG was offering. AIG is an A.M.Best rated company so I know they do not offer fly by not insurance products or fads.

AIG, and other Florida providers I found through Term Insurance New York, all have the same take on the product. It is an option while choosing protection for your family but is not for everyone.

Here's why. The cost of a basic term life insurance policy in Florida is a bare bones flat rate. If the inured chooses a level premium plan, their monthly insurance premium will never change over the life of that policy. Regardless if it is a 10,15, or 20 year term, the payments will never vary. If the insured dies during the term of the policy, the amount of money due to the beneficiary is predetermined and there are no surprises. That is the way insurance should be.

However, what if you live through the term, and the policy just ends? You do have the right to renew under most term insurance policies, but the premium should go up slightly because your age and health risks have increased. But what about all the money you have spent over the years? Has it all gone for nothing?

Well, some people feel that way. Many younger people feel the need to buy term insurance to make sure their families, mortgages, and spouses are cared for, but some may buy additional policies to ease the burden of other specific events. Perhaps they don't want use the money for insurance but they feel it is the right thing to do. Well, they can pay a higher premium and get a Return of Premium Term Life Insurance Policy. If they live until the term ends they receive a return on investment and it is usually guaranteed to pay them back all the money they spent along the way on their premium.

Here is how it works. Insurance companies are happy to take in more money on your premium because just because you pay more to them, your chances of dying do not increase. The insurance provider tries to make around 6%to 8% per annum on that money, and if they do after 20 years they could earn as much as 160% on the money you let them hold on those extra premiums. It sounds like a great deal for everyone but it isn't really.

I am a stickler for just insuring what needs to be insured. To me that is your life. You want to pay as little as possible to protect your family in the case of your death. I don't like investing in term life insurance policies because if you die, your beneficiary does not receive any extra money. The extra money is only returned if you live through the term of the policy and it ends.

If you would like more information on Return of Premium Term Life Insurance, go to terminsurance.com and start looking at which companies offer the product. It might be something that will serve your individual needs.