Question 5015 of 303 · California Life-Only Agent Exam

A return of premium term policy

Exactly one answer is correct.

Arefunds premiums to the owner if the insured survives the term
Bpays a double death benefit if the insured dies in the first year
Creturns premiums if the owner lapses early
Dreturns premiums to the beneficiary in addition to cash value

Show solution

Correct answer to question 5015

A: refunds premiums to the owner if the insured survives the term

Explanation

Return of premium term costs more because the insurer refunds premiums if the insured outlives the term.