Usually, the insurance policy period is terminated upon insured’s death. According to two judgments rendered by Taipei District Court (90 Pei-Pao-Shien-Hsiao 47 and 90 Pao-Shien-Hsiao-San 7), the beneficiary may claim the unearned premium offset by the insurer with the insured amount, even if the premium during the insurance period of the insured’s death was unpaid. Apparently, such opinions are based upon a misunderstanding of the policy reserve, unearned premium and death benefit. This essay will first clarify the relevant insurance terminology, and then it will proceed to comment on the defects of the said judgments in view of contract control.