A return of premium term life policy is classified as what type of term coverage?

A return of premium term life policy is classified as increasing term coverage because it offers a benefit that grows over time. In this case, policyholders receive a return of the premiums paid if they outlive the term of the policy. This feature makes it distinct from traditional term life insurance, which typically provides a fixed death benefit.

Increasing term coverage is characterized by benefits that can grow or increase in value during the life of the policy. As the return of premium policy matures, it provides additional value in comparison to standard term life policies, which maintain a constant death benefit throughout the term. The growth aspect in a return of premium policy aligns with the increasing nature of the coverage, making this classification accurate.