Question

An insured dies within the time limit of an Increasing Term Rider and the beneficiary receives the face amount plus the value of all paid premiums. Which rider is attached to the policy?(A) Return of cash flow(B) Return of premium(C) Waiver of premium(D) Not allowed, insurers do not return premiums in this manner.

Answer 1

Answer:

The correct answer is B

Explanation:

Return of premium rider is the kind of policy where the add on that returns, the premiums paid if the insured person or outlives the terms and the conditions of the policy.

So, in this case, Insured person dies within the time period, and the beneficiary received the face amount and in addition all the premiums paid. It is the return of premium which is linked with the policy.