A Return of Premium term life policy is written as which type of term coverage?

A Return of Premium (ROP) term life insurance policy is classified as level term coverage. In a level term policy, the death benefit remains the same for the duration of the policy, which is a key feature of ROP. This type of policy guarantees that if the insured person passes away during the term, their beneficiaries will receive a predetermined death benefit.

Additionally, the unique aspect of ROP policies is that if the insured outlives the policy term, they will receive a refund of all the premiums paid during that period, provided the policy is kept in force. This means that the insured is not only protected by a level death benefit but also has the potential to recoup the premiums paid if no claims are made during the term, making it an attractive option for many.

These characteristics distinguish a level term policy from other types of term coverage such as increasing or decreasing term policies, where the death benefit either rises or falls over time.