What does a return of premium rider provide to the insured?

The return of premium rider is a unique feature that enhances a term life insurance policy by providing a benefit if the insured outlives the term. Specifically, it guarantees that the premiums paid during the policy term will be refunded if the insured survives to the end of the term. This option offers a sense of security and assurance to policyholders, as it essentially allows them to reclaim their investment in the policy if they do not make a claim. This feature distinguishes it from standard term life policies, which do not return any premiums if the insured lives past the policy term, hence the choice that highlights this benefit is the most accurate.

The other choices may suggest benefits that are not applicable to a return of premium rider. A higher death benefit, for instance, refers to increased coverage rather than the refund of premiums. A free policy extension pertains to extending the coverage without cost, and increased cash value accumulation typically applies to permanent life insurance policies, not term plans with a return of premium rider.