A 20-year Return of Premium term policy charges a higher premium than a standard level term policy. The insured survives the full 20 years. What does the insured receive?

Why this is the answer

A Return of Premium (ROP) term policy pays a death benefit if the insured dies during the term, and refunds all premiums paid if the insured survives the full term. Because the refund equals cumulative premiums paid (the basis), it is not a gain and is therefore income-tax-free as a return of the insured's own money. Option B is wrong—the face amount is only paid as a death benefit, not a living benefit upon survival. Option C is wrong—term policies do not accumulate cash value in the traditional sense. Option D is wrong—an ROP policy does not convert to a paid-up permanent policy. The TX outline §I.C identifies Return of Premium as a distinct term sub-type.