What is the purpose of a "return of premium" rider?

The purpose of a "return of premium" rider is indeed to refund the premiums paid if the insured outlives the term of the policy. This rider can provide a sense of security to policyholders, as they know that if they do not pass away during the covered period, they will receive back the money they invested in the policy in the form of premium payments. This can make the life insurance more appealing, effectively creating a savings aspect along with the life coverage. It is particularly popular among those who want the safety of a life insurance policy while also having the comfort of knowing they won’t lose their investment if they live beyond the term.

This rider is structured to offer that financial return, enhancing the overall value of the policy for the insured.