What does the Return of Premium feature in a term policy provide to the insured?

What does the Return of Premium feature in a term policy provide to the insured?

• A. Only the death benefit after the term ends
• B. The face amount of the policy plus paid premiums
• C. A reduction in premiums for future coverage
• D. No additional benefits upon expiration of the policy

Answer: (B)

The Return of Premium feature in a term policy allows the insured to receive back the total amount of premiums paid if they outlive the term of the policy. This feature not only serves to provide peace of mind during the coverage term by ensuring that the premiums paid are not lost if the insured does not pass away during that time, but also functions as a way to incentivize purchasing term life insurance by adding a potential financial benefit at the end of the policy term. As a result, if the insured survives the term, they receive the face amount of the policy plus any premiums that they have contributed throughout the policy period. This creates a safeguard for those concerned about the "lost" money characteristic of traditional term life insurance.

The Return of Premium feature in a term policy allows the insured to receive back the total amount of premiums paid if they outlive the term of the policy. This feature not only serves to provide peace of mind during the coverage term by ensuring that the premiums paid are not lost if the insured does not pass away during that time, but also functions as a way to incentivize purchasing term life insurance by adding a potential financial benefit at the end of the policy term. As a result, if the insured survives the term, they receive the face amount of the policy plus any premiums that they have contributed throughout the policy period. This creates a safeguard for those concerned about the "lost" money characteristic of traditional term life insurance.