Why it matters
A refund sounds appealing, but the higher premium is the price of that feature. If the policy is canceled early, the refund may be reduced or lost. Compare the extra cost with what the same money could earn elsewhere. Return of premium suits buyers who want term coverage and also want a payback if they do not die. Refund rules, term lengths, and tax treatment vary by carrier and policy. Read the contract before buying.
Source: iii.org
Read next, for familiesTerm life insurance: how it works, what drives price, and when it ends