Some life insurance policies have a ‘return of premium’ clause, which usually means the regular payments made into the plan (the premiums) will be returned if the person doesn’t pass away within the stated term of the policy.
‘Return of premium’ policies have pros and cons. The benefits of a ‘return of premiums’ clause may include a reduced risk of losing the money paid in. The downsides may be that the premiums could be higher in the first place. Tax implications are also worth considering.