Return Of Premium Fred asks what Dave thinks of return of premium insurance. Dave doesn't like it at all for one reason. QUESTION: Fred on Facebook asks what Dave thinks of return of premium insurance. Dave doesn’t like it at all for one reason. ANSWER: I would never buy that. Return of premium is a gimmick that’s added to different kinds of insurance, particularly life insurance or maybe long term care insurance. It says if you don’t use the insurance by a certain age, they’ll give you all the premiums that you paid back in. In order to do that, you must pay a little extra for this feature. But if you take that extra amount and simply invest that, you would have your premiums. That’s how they are doing it. You can return yourself all your premiums whether you use it or not.