You may be asking yourself, "If I am going to pay extra for this optional rider, is it worth it?" The following example demonstrates just how valuable this optional rider can be:

John, 35, is a non-smoker. For a 30-year term $100,000 policy, his premium is $500 per year. At the end of the 30 years, John will have paid $15,000 for valuable death benefit protection. Other than that, there is no additional benefit payable, unless he dies while the policy is in force in which case his beneficiary will receive a $100,000 death benefit.

However, with the optional Return of Premium rider, John may receive all of his premium back, with only a slight increase in cost should he survive for the duration of the term. Selecting the Return of Premium rider option adds $150 to his premium every year. After 30 years, he will have paid $19,500, or $4,500 more than what he would have paid for just the death benefit. Yet, with the Return of Premium rider, he will be entitled to a full refund of premium if he survives for the length of the term.

To put it another way, for an additional $4,500, he is entitled to a $19,500 cash payment (a full refund of premium without interest) at the end of the 30-year term. If he dies during the term of the policy, a death benefit is paid, but if he (the insured) lives, he gets all of his premium back!

Money back rider Pro Rata Surender Value Percentage of Total Premiums
End of Year	15 Year	20 Year	25 Year	30 Year
1-5	0%	0%	0%	0%
6	5%	3%	2%	1%
7	10%	6%	4%	2%
8	15%	9%	6%	3%
9	20%	12%	8%	4%
10	25%	15%	10%	5%
11	40%	22%	13%	7%
12	55%	29%	16%	9%
13	70%	36%	19%	11%
14	85%	43%	22%	13%
15	100%	50%	25%	15%
16		60%	30%	17%
17		70%	35%	19%
18		80%	40%	21%
19		90%	45%	23%
20		100%	50%	25%
21			60%	30%
22			70%	35%
23			80%	40%
24			90%	45%
25			100%	50%
26				60%
27				70%
28				80%
29				90%
30				100%

Although this is only a refund of premium without interest and not an investment, it is more valuable than you think! For example, what would happen if John took the additional premium ($150) and saved it instead of adding the return of premium rider? Based on the current premium scale for a 30-year term, in order to receive a cash payment equal to his premium refund under the Return of Premium rider, John would have had to allocate the additional funds elsewhere, and received a return of 8.31%.

Annual increase in premium $150 Return of premium benefit, end of 30 years $19,500.

If you are interested in finding out more information about the Return of Premium/Money Back rider on our term products, please call (800) 810-5739, or use this...