Definition of "Coupon policy"

Lorna Moodie, GRI, PMN real estate agent
Lorna Moodie, GRI, PMN, Real Estate Agent 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.

Have a question or comment?
We're here to help.

*** Your email address will remain confidential.


Popular Insurance Terms

Popular Insurance Questions