Question

What is the unique feature of Term Assurance with Return of Premium?

a.

It provides coverage for a specified period after the insured's death

b.

It offers increasing death benefits over time

c.

It returns premiums paid on the date of maturity

d.

It allows policyholders to defer premium payments

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).It returns premiums paid on the date of maturity Explanation:Term Assurance with Return of Premium is unique in that it not only provides benefit payment on death during a specified policy term but also returns premiums paid (with or without interest) on the date of maturity.

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Q. What is the unique feature of Term Assurance with Return of Premium?
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