What type of term policy allows for the return of premiums?

The correct choice refers to a type of term life insurance policy that is often structured to provide a return of premiums paid upon the end of the policy term, assuming the insured does not pass away during that time. This type of policy allows policyholders to regain the premiums they have paid, which can make it more appealing for individuals who consider standard term life insurance less attractive due to its lack of cash value or return of investment.

Decreasing term policies usually have a death benefit that decreases over time and do not offer a return of premiums. Level term policies maintain a consistent death benefit throughout the term, but similarly do not return premiums. Increasing term policies feature a gradually increasing death benefit but lack the premium return structure. Renewable term policies allow for the renewal of the insurance coverage at the end of the term without needing to prove insurability but also do not return the premiums.

The return of premiums feature in increasing term policies provides a safety net, making it a strategic choice for those wanting life coverage while also seeking a financial return if they outlive the term of the policy.