Life insurance policy

Life insurance policy
Definition: [crh] The contract that sets out the terms of life insurance coverage.

single life insurance policy combining term life insurance and ordinary life insurance . If the insured dies during the term period, a multiple of the face amount is paid to the beneficiary .

Variable Life Insurance Policy
A form of whole life insurance, variable life insurance provides permanent protection to the beneficiary upon death of the policy holder.

Adjustable Life Insurance Policy
A variable life insurance contract where a person can change his or her annual premiums and the amount of coverage provided.
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Whole Life Insurance Policy - A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured.

Life insurance policy in which all premiums have been paid. Some policies require premium payments for a limited number of years, and if all premium payments have been made over those years, ...

Life insurance policy
The contract that sets out the terms of life insurance coverage.
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A life insurance policy provision that calls for an additional payment, usually equal to the face amount of the insurance, in the event of accidental death. also called accidental death benefit.

A life insurance policy in which all premiums that are due have been paid.
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A life insurance policy with a fixed face value and increasing premiums.
Leverage
The use of debt financing, or property of rising or falling at a proportionally greater amount than comparable investments ...

A life insurance policy pays your beneficiary the face value of your policy minus any loans you haven't repaid when you die.

A life insurance policy that a company purchases on a key executive's life. The company is the beneficiary of the plan and pays the insurance policy premiums.
Also known as "key man insurance", "key woman insurance" or "business life insurance".

A life insurance policy on the life of a borrower that pays off the balance of the loan in the event the borrower dies. The face amount of the credit life insurance policy decreases as the loan is paid off and generally is a decreasing term policy.

A life insurance policy purchased by a company to insure the life of a key executive. The company is the beneficiary in case of the executive's death.

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In a life insurance policy, the difference between the potential maximum claim and policy reserves.
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A term life insurance policy that may be renewed at prescribed rates without evidence of insurability.
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A term life insurance policy provides a guaranteed death benefit for a set period of time, such as five, ten, or 20 years, provided you continue to pay the premiums as they are due.

A whole life insurance policy that provides a death benefit that depends on the market value of the insured's portfolio at the time of the death.

A whole life insurance policy that provides a death benefit dependent on the insured's portfolio market value at the time of death.

Do You Own A Life Insurance Policy That You No longer Need or Want? It is possible that you may be able to can get a CASH settlement in excess of the current cash surrender value by selling your policy in the secondary market to an investor.

Exchanging one life insurance policy for another or for an endowment or annuity contract, ...

Endowment: A life insurance policy paid to the policyholder on the maturity date, or to a beneficiary if the policyholder dies before that date.
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cash value
In a life insurance policy, cash value is the build-up in the owner's cash savings. At any point in time, it represents the amount of money (before adjustments) that would be returned to the policy owner upon cancellation of a policy.

UK investment in life insurance policy in the United Kingdom, a product where the investment is paid as a single premium into a life insurance policy with an underlying asset-backed fund.

A promise that a life insurance policy will be renewed without penalty or medical examination after the term has expired. The renewal rate can also be guaranteed.
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Paid-up policy A life insurance policy in which all premiums that are due have been paid.

Settlement options The various possibilities open to a beneficiary under a life insurance policy as to how the benefit will be paid out.

cash value life insurance policy A life insurance policy which in addition to providing a benefit upon the death...

Cash-surrender value The amount an insurance company will pay if the policyholder ends a whole life insurance policy. Cashout Refers to a situation where a firm runs out of cash and cannot readily sell marketable securities.

Level term insurance A life insurance policy with a fixed face value and increasing premiums. Leverage The use of debt financing, or property of rising or falling at a proportionally greater amount than comparable investments.

Nonparticipating life insurance policy Life insurance policy whose policyholders do not receive dividends, because they are not participants in the interest, dividends, and capital gains earned by the insurer on premiums paid.

The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory.

A life insurance policy which remains in force where the insured has paid premiums over part of the term of the policy but is unable to make...(Read more)
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If you are over age 70 and no longer need your life insurance policy, you may be able to sell it to a third party in what's called a life settlement.

Key person insurance, also known as key man life insurance, key woman life insurance, and business life insurance, is a life insurance policy purchased by a company on the life on an employee.

Keep in mind that distributions of money from your life insurance policy and employer-sponsored retirement plan, such as a 401(k), normally are handled separately from your will.

Key person insurance is a particular type of life insurance policy taken out by a company on one of their employees, in which the company is the beneficiary in the case of that employee's untimely demise.

Form of life insurance policy that protects the insured's beneficiary(s) in case the insured passes away. Unless the policy lapses or is canceled, it will remain in effect for the insured's lifetime.

Variable life insurance policy A whole-life insurance product that provides a death benefit dependent on the insured's portfolio market value at the time of death. Variable life insurance is offered by prospectus only.

A life insurance policy where the annuity premium (a set amount of dollars) is immediately turned into units of a portfolio of stocks.

A life insurance policy where the set annuity premium is immediately converted into a portfolio of stocks. Upon retirement, the policyholder is paid according to the stock portfolio, the dollar value of which varies according to its performance.

What Does Insurable Interest Mean on a Life Insurance Policy?
People often have many questions about life insurance policies because of how intricate and complex these policies and contract can be.

Variable Annuity - A life insurance policy where the annuity premium (a set amount of dollars) is immediately turned into units of a portfolio of stocks.

Viatical Settlement: The proceeds received from the sale of a life insurance policy, on the life of a terminally ill individual, to a third party.

If somebody took out a life insurance policy to be paid as an annuity, then the process would usually entail investing large lump sum, which will make capital gains, in return for fixed payments over the life of the investor.

Single Premium Life Insurance - A life insurance policy requiring one premium payment. Money for the premium is usually borrowed as part of a larger loan with the borrower paying interest on that amount over the term of the loan.

A viatical settlement is one where a person sells his or her life insurance policy before its maturation. This preemptive sale results in receiving a lump sum payment after the insurer has deducted charges and processing fees.

If you’re buying a life insurance policy, you’ll need financial advice. After all, you’re asking the question: How much will my loved ones need in my absence?

In a variable life insurance policy, the cash value is invested in equity or debt securities. Policyholders can select and switch investment instruments.

A life insurance policy that not only pays the face amount on the death of the insured, it builds cash value because the required premiums exceed the amount necessary to provide pure insurance protection.

An investment that combines a life insurance policy with a mutual fund. The fund shares are used as collateral for a loan to pay the insurance premiums.

An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, give the investor the advantages of insurance protection with the growth potential of a mutual fund.

Accidental Death Benefit - In a life insurance policy, benefit in addition to the death benefit paid to the beneficiary, should death occur due to an accident. There can be certain exclusions as well as time and age limits.

Term insurance: The type of life insurance policy that provides coverage for a specified period of time (e.g., 10, 15, 20 or 25 years) or until the insured reaches the age specified in the insurance policy.

This is the most straightforward type of life insurance policy. It provides a payment of the sum assured if death occurs during the term of the policy. The term is the length of time selected for the life cover to continue.

CASH SURRENDER VALUE - A cash value life insurance policy accumulates a cash surrender value the amount...
CASH SURRENDER VALUE (CSV) - The amount of cash that can be obtained by the policy owner upon cancellat...

Temporary life insurance policy that can be renewed each year and that includes both an insurance and an investment component. The investment component consists of investing excess premiums to generate a return for the insured.

proceeds received from a life insurance policy less the ACB of the life insurance policy
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Key man (or woman) insurance
A life insurance policy purchased by a company to insure the life of a key executive. The company is the beneficiary in case of the executive's death.

The amount of cash that could be received if a whole life insurance policy were canceled.
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See also: Expense, Banks, Saving, Values, Compensation