Which of the following statements is true regarding return of premium

Which of the following statements is true regarding return of premium term insurance?

A) The insurance is free because premiums are refunded at the end of the coverage period.
B) Life insurers charge less for this coverage than for regular term insurance that does not include a refund provision.
C) The return of premium is only offered on one-year term insurance policies.
D) The coverage is expensive and is not free when time value of money is considered.

ANSWER

Answer: D