---
title: "What Is Return of Premium (Graded)? Definition | Epic Life Glossary"
description: "Return of premium in a graded plan means the carrier refunds the premiums paid, often with interest, instead of the full death benefit if the insured..."
url: https://epicline.preview.multisites.ai/glossary/return-of-premium
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Policy mechanics

# Return of Premium (Graded)

Return of premium in a graded plan means the carrier refunds the premiums paid, often with interest, instead of the full death benefit if the insured dies of natural causes during the waiting period.

## Why it matters

This feature protects the buyer from losing money if coverage is short. A family still gets back what was paid, but not the full face amount. It differs from a return of premium term policy, which refunds premiums if you outlive the term. The interest rate and period vary by carrier and state, so check the policy before you buy.

Source: [naic.org](https://content.naic.org/article/consumer-insight-life-insurance-roadmap)

[Read next, for familiesGuaranteed issue life insurance: who gets approved, what the waiting period means](https://epicline.preview.multisites.ai/life-insurance/guaranteed-issue)

## Where we use this term

-   [Term life insurance: how it works, what drives price, and when it ends](https://epicline.preview.multisites.ai/life-insurance/term-life)

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