Return of Premium Rider

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Return of Premium Rider A return of premium rider typically refunds you the total premium you paid for your base policy. It may not refund fees or the premium you paid for other riders on your policy. Being late on payments may reduce your refund or disqualify you from receiving one at all. For most types of term insurance, if you have not had a claim under the policy by the time it expires, you get no refund. But some insurers have created term life with a "return of premium" feature, which returns part or all of the money you have already paid if you have not used the policy once your term ends. It works by providing you, the policy holder, a return of your premium if you are still alive when your term policy comes to an end. For example, if you purchased a 20-year term policy at age 30 and now, 20 years later at age 50 you're still alive, your money will be refunded to you. A rideris an amendment to a policy agreement. With ROP, either your beneficiaries get the death benefit, or you get a refund of the premiums you paid. The return of premium rider pays the total amount of premiums paid into the policy as long as the insured dies within a certain time period specified in the policy. Whether a return of premium rider makes financial sense depends on the likelihood that the policyholder will invest the money elsewhere at a higher return. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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