Return of Premium Death Benefit

The Return of Premium Death Benefit is a feature in some life insurance policies that provides an additional benefit to the beneficiaries beyond the standard death benefit. This feature ensures that if the insured person passes away within a specified period, not only will the beneficiaries receive the face amount of the policy, but they will also receive an amount equal to all or some of the premiums paid into the policy.

Return of Premium Death Benefit is often associated with term life insurance policies, which typically do not accumulate cash value like permanent life insurance does.

The return of premium feature effectively addresses one of the common criticisms of term life policies that if the policyholder outlives the term, all the premiums paid are 'lost'.