What does the Return of Cash Value Term Rider allow beneficiaries to receive upon the insured's death?

The Return of Cash Value Term Rider is designed to enhance a term life insurance policy by providing additional benefits to the beneficiaries upon the insured's death. When this rider is attached to a policy, it ensures that, in addition to the basic death benefit, beneficiaries also receive the cash value accumulated within the policy.

This is particularly appealing because, under typical term life insurance policies, there is no cash value component. However, with the Return of Cash Value Term Rider, the insured's beneficiaries will benefit from both the death benefit and the accumulated cash value, which represents the savings element. This combination allows the beneficiaries to receive a more substantial financial payout, reflecting both the insurance coverage and any cash value growth, making it a particularly attractive option for those seeking both life coverage and potential investment growth.

This rider does not provide beneficiaries with a share in company profits or only the cash value; rather, its primary purpose is to offer a combined payout that includes both components upon the insured's death. This approach makes the Return of Cash Value Term Rider a unique and beneficial addition to standard term life policies.