Tennessee Insurance Practice Exam 2026 – All-in-One Resource for Exam Success!

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How does the Return of Premium rider typically function in a Whole Life policy?

It returns premiums paid if the insured lives to a certain age

The Return of Premium rider in a Whole Life policy is designed to provide a unique benefit for policyholders who survive to a specified age, typically aligning with the policy's maturity date. When this rider is included, and if the insured lives until that predetermined age, the insurance company refunds all or a portion of the premiums that have been paid. This feature not only adds a saving aspect to the whole life insurance policy but also offers a sense of financial security, as it ensures that the money invested in premiums is returned if the insured does not pass away during the policy's term. This makes it an appealing option for individuals looking for both coverage and potential financial returns on their investment.

The other options do not accurately describe the specific functionality of the Return of Premium rider.

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It increases the death benefit gradually

It offers lifelong coverage at a reduced rate

It provides special benefits for chronic illness

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