Which feature is unique to a return of premium life insurance policy?

A return of premium life insurance policy is distinct in that it guarantees a refund of the premiums paid if the insured outlives the policy term. This feature is a defining characteristic of this type of insurance, as it combines the benefits of life insurance with a sort of savings plan. The intent behind this structure is to provide not just protection for beneficiaries in case of the insured’s death but also a financial benefit if the insured survives the policy's term.

While many life insurance products may offer a guaranteed death benefit, the key distinction of return of premium policies is in the return of premiums, which means policyholders are not merely paying for coverage; they also have the potential to receive money back if they do not require the death benefit. This unique feature can appeal to those who are concerned about the loss of premium payments and want some assurance of recovery if they remain healthy.

Additionally, options like lower premiums, guaranteed death benefits, and flexible terms might apply to various types of life insurance, such as term life or permanent life policies, but they do not specifically highlight the unique refund aspect that sets return of premium life insurance apart. Hence, the refund of premiums paid if the insured survives is what makes this policy uniquely attractive.