Life Policy ProvisionsQuestion 560 of 716
The return-of-premium rider on a life policy is funded essentially as a(n):
a.Decreasing term rider that shrinks each policy year
b.Increasing term rider equal to the premiums paid
c.Immediate annuity bought at policy issue
d.Paid-up whole life rider bought with dividends
Explanation
Return of premium is achieved with an increasing term rider whose amount grows to match the cumulative premiums, so surviving the term returns those premiums. It is not decreasing term, whole life, or an annuity.
This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 716 questions free — no signup required.
Own the complete California Life & Health Insurance Producer Exam guide — PDF + EPUB, $19.99 →
Related questions on this topic
- The payor benefit rider on a juvenile life policy provides that, if the premium-paying adult dies or becomes disabled:
- An accidental death benefit (double indemnity) rider generally pays the extra benefit only if death:
- Under an AD&D benefit, the amount paid for the accidental loss of a body part such as a hand or eye is called the:
- Adding a level term rider to a whole life policy lets the owner:
- An accelerated (living) death benefit rider allows the insured to receive part of the death benefit while still alive if the insured:
- A long-term care rider attached to a life insurance policy generally:
Last reviewed: · editorial process
PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)