What type of insurance would be used for a return of premium rider?
Similarly, what type of insurance is used for a return of premium rider?
Return of premium rider. A policy add-on that returns the premiums paid if the insured outlives the term of the policy. For example: If a 10-year term life policy is purchased for $50 per month, and the insured outlives that time period, with this rider, the policyholder would have up to $6000 in premium returned.
Also Know, what is a return premium car insurance? Definition. Return Premium — the amount due the insured if the actual cost of a policy is less than what the insured has previously paid—for example, if the limits are reduced, the estimated exposure at inception is greater than the audited exposure, or the policy is canceled.
Keeping this in view, what is a return of premium life insurance policy?
A return of premium (ROP) life insurance policy means that when the term of your life insurance policy is up and you're still alive, you get the amount you put in as premiums returned to you, tax free. If you paid $50 a month for a 10-year term, you get $6,000 back.
What is premium rider?
A waiver of premium rider is an insurance policy clause that waives premium payments in the event the policyholder becomes critically ill, seriously injured, or disabled. Other stipulations may apply, such as meeting specific health and age requirements.