What does Return of Premium mean? Read on to discover the definition & meaning of the term Return of Premium - to help you better understand the language used in insurance policies.
Return of Premium
Return of premium is a type of insurance policy in which all or a portion of the amount of premiums paid during a policy period will be returned to the policyholder if claims are not filed, or if the amount of claims filed is smaller than the amount of premiums paid. This type of policy is commonly used in life insurance.
We hope the you have a better understanding of the meaning of Return of Premium.