Beshak Insurance dictionary
Return of Premium Option
Term Life Insurance
- Usually there is no survival benefit in a term insurance policy.
- Which means if the policy term ends and the person covered survives the policy term, the term Insurance premiums are not refundable
- But there is a Return of Premium option available. Here in case the person covered survives the policy term, the insurer pays the aggregate of net premiums paid on the policy.
- The aggregate of all net premiums paid becomes the survival benefit in the Return of Premium Option of Term Insurance.