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A return of premium term life insurance policy
typically offers a level death benefit with fully guaranteed* level premiums for
the first 15, 20, or 30 years, though this may vary by
company and state. Under the return-of-premium
feature, the cumulative premiums paid, not including substandard and rider charges,
will be returned at the end of the level term period if the policy is in force at
that time. Often, a portion of the cumulative premiums will be returned upon surrender
after the policy has been in force for a specified number of years. Most return
of premium life insurance policies allow for conversion to
permanent insurance offered by the same company during the covered period
without further evidence of insurability.
*guarantees subject to the claims-paying ability of the
underwriting insurance company
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