Return of Premium Rider

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" bgproperties="fixed" background="122285a1erlcgo.gif"> <div> <FONT SIZE="5" COLOR="#FFCC66" FACE="Arial" ><B>Disability Income Insurance</B></FONT><B>     |     </B><A HREF="index.htm" TARGET="_top" TITLE="Disability Income Insurance"><U><B>home</B></U></A></div> <div> back to  <A HREF="id4.htm" TARGET="_top" TITLE="Chapter 3"><U><B>Chapter 3</B></U></A></div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="121d2c00dkelyh.gif"> <div> <A HREF="mailto:instructor@wallstreetinstructors.com" TARGET="_top" TITLE="mailto:instructor@wallstreetinstructors."><U><IMG SRC="12aaf630.gif" border=0 width="175" height="99" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></A></div> <div> <TABLE BORDER="2" CELLPADDING="2" CELLSPACING="1" WIDTH="83" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 16 ><NOBR><div> <A HREF="mailto:instructor@wallstreetinstructors.com" TARGET="_top" TITLE="mailto:instructor@wallstreetinstructors."><U>Instructor</U></A></div> </NOBR></tD> </tR> </TABLE></div> <bR> <div> <A HREF="id33.htm" TARGET="_top" TITLE="Social Insurance Benefits Rider"><U>Social Insurance Benefits Rider</U></A></div> <div> <A HREF="id34.htm" TARGET="_top" TITLE="Purchase Option Rider"><U>Purchase Option Rider</U></A></div> <div> <A HREF="id35.htm" TARGET="_top" TITLE="Cost of Living Rider"><U>Cost of Living Rider</U></A></div> <div> <B>Return of Premium Rider</B></div> <div> <A HREF="id37.htm" TARGET="_top" TITLE="Hospital Income Rider "><U>Hospital Income Rider </U></A></div> <div> <A HREF="id38.htm" TARGET="_top" TITLE="Chapter 3 Review"><U>Chapter 3 Review</U></A></div> <bR> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <B>Return of Premium Rider</B></div> <bR> <div> Riders that provide the policyowner with a return of his or her premium are not without their critics.  Some of these critics claim that the return of premium possibility keeps policyowners from submitting legitimate claims.  As a result of this controversy, Return of Premium riders are not available in all states.</div> <bR> <div> In the typical Return of Premium rider, the policyowner pays a premium in addition to that required for the disability benefit.  That additional premium creates a cash value that is payable to the policyowner, <I>less</I> the total of any claims previously paid, on dates specified in the policy.  </div> <bR> <div> The Return of Premium rider is usually designed to make "return of premium" payments according to the following schedule:</div> <bR> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Upon surrender of the policy,</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">At the death of the insured or</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">At a particular date or dates in the future, for example: every 10 years or at age 65.</div> <bR> <bR> <bR> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="97" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" BGCOLOR=#FFCC66 > <tR> <tD VALIGN=CENTER HEIGHT= 38 WIDTH="87"><div> <A HREF="id37.htm" TARGET="_top" TITLE="Hospital Income Rider "><U><B><U>NEXT</U></B></U></A></div> </tD> </tR> </TABLE></div> <bR> </td> </tr></table></body>