Return of Premium Rider - Life Insurance Exam Prep

So the return of premium rider is typically added to whole life policies and what this does is it allows for the premiums paid in to be refunded to the beneficiary in addition to the death benefit when the insured passes away. They have a return of premium rider on and the death benefit is a hundred thousand dollars and they've paid in three thousand dollars of premiums then you'll get they'll get the beneficiary who would get one hundred and three thousand dollars as the death benefit. Now what a return of premium rider technically is is a small term rider that's added to the policy right and that term policy will cover up the premiums that would be that have been paid in so it's like almost like a policy to cover the your premiums as well so it's a really really small term policy that's added to a whole life to help cover the cost of refunding those premiums back to the beneficiary if when the insured dies. So like I said as an example if the insured had a one hundred thousand dollar whole life policy and they pass away and they paid in three thousand dollars at the time into the policy in premiums and they have a return of premium rider on the policy then their beneficiary would receive one hundred three thousand dollars. Hope you find value in this video if you would like more information on hope you found value in this video please subscribe to the channel I hire life insurance agents nationwide to sell life insurance one hundred percent over the phone we provide all the leads you need full training full mentorship and advancement opportunities so if you have any questions about that email me at jve at djve.com you're going to want to take a look at this video up here to learn other helpful helpful tips that will help you pass your life insurance licensing exam.