Definition of "Coupon policy"

Lorna Moodie, GRI, PMN real estate agent

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Lorna Moodie, GRI, PMNelite badge icon

Re/Max of Stuart

Nonparticipating life insurance (also called a guaranteed dividend or guaranteed investment policy) sold by a stock life insurance company, usually as a 20-payment policy with coupons attached. The, policy owner can cash in each coupon (which is actually one of a series of pure endowments) for a stipulated sum at the time of paying the annual premium.

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