Return of premium

Return of premium is a terms in the insurance policy providing for the payment of a benefit equal to the stated percentage of all the premiums paid. It will be fewer claims paid if the claims paid over a stated period of time do not exceed a fixed percentage of the premiums paid. The cumulative premiums through the level term period will be paid at the end of the level-premium period. For instance, a $10 million policy bought for $1 million over a 30 year period would result in the $1 million being refunded to the policyholder. No money will be refund if the policy is cancelled at any time.