Return of Premium Rider

Riders that provide the policyowner with a return of his or her premium are not without their critics.  Some of these critics claim that the return of premium possibility keeps policyowners from submitting legitimate claims.  As a result of this controversy, Return of Premium riders are not available in all states.

In the typical Return of Premium rider, the policyowner pays a premium in addition to that required for the disability benefit.  That additional premium creates a cash value that is payable to the policyowner, less the total of any claims previously paid, on dates specified in the policy.  

The Return of Premium rider is usually designed to make "return of premium" payments according to the following schedule:

Upon surrender of the policy,
At the death of the insured or
At a particular date or dates in the future, for example: every 10 years or at age 65.