In life insurance, what typically happens if the policyholder outlives the term?

In the context of term life insurance policies, if a policyholder outlives the term, they typically have the option to receive a refund of paid premiums if the policy includes this specific provision. This feature is often associated with some term policies known as "return of premium" policies. These policies are designed to provide a benefit in case the policyholder does not pass away during the term of coverage, ensuring that they do not lose the premiums they have paid.

While standard term policies do not have a cash value or offer payouts after the term ends, certain policies allow for premium refunds, making them attractive to policyholders who want the security of a potential financial return. The other options generally apply to different types of policies or situations. For example, the death benefit being paid out is characteristic of whole life policies upon the death of the insured, not at the end of the term. Thus, receiving a refund of premiums stands out as the correct and relevant outcome for those who outlive a term policy that includes this provision.