A return premium life insurance policy is characterized as?

A return premium life insurance policy is primarily associated with the unique characteristics of whole life insurance and increasing term insurance. This type of policy offers a benefit whereby, if the insured survives the term of the policy, a portion of the premiums paid is returned.

Whole life insurance provides lifetime coverage and includes a savings component that builds cash value over time, while increasing term insurance is designed to provide increasing death benefits as the policyholder ages. Together, these aspects outline how return premium policies function, as they blend the aspects of guaranteed coverage with the potential for a return on premiums if no claims occur.

The other options do not adequately reflect the characteristics of a return premium life insurance policy. For instance, term insurance with cash value confuses two distinct insurance types, as traditional term policies do not accumulate cash value. Universal life introduces flexible premium payments and a varying death benefit but does not specifically align with the return of premiums. Variable life emphasizes investment options but, again, does not inherently involve returning premiums to the policyholder as a core feature. Therefore, the characteristics of whole life and increasing term better define the nature of a return premium life insurance policy.