Why it matters
The rider makes a term policy more like a savings feature, but it raises the premium noticeably. The refund may be reduced if the policy ends early. Compare the added cost with what that money could earn in another place. Refund rules, term lengths, and tax treatment vary by carrier and policy. Read the contract to see what counts as paid, and whether partial refunds apply if the policy is canceled.
Source: iii.org
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