What does the Return of Premium Rider provide to the insured at the end of the term?

The Return of Premium Rider is designed to offer a refund of the premiums paid if the insured outlives the term of the life insurance policy. This means that at the end of the term, the insured will receive back the total amount of premiums they have paid during the policy's duration. It acts as a safeguard for the policyholder, making it an attractive option for individuals who may be concerned about paying for a policy that may not ultimately provide a death benefit if they live beyond the term. This feature essentially ensures that the premiums are not considered a total loss, as the insured gets their contributions refunded if they survive the policy term.

Other options, such as paying a bonus or providing a discounted cash surrender value, do not accurately describe the primary function of the Return of Premium Rider. The rider does not include additional financial incentives beyond what was paid in premiums, nor does it alter the surrender value in a way that reflects a deduction or discount on premiums. Additionally, refunding only the last year's premium does not align with the comprehensive nature of the rider, which returns all premiums paid.