Current Assumption Whole Life Insurance
Definition of "Current assumption whole life insurance"
Variation of ordinary life insurance under which current mortality experience and investment earnings are credited to the insurance policy either through the cash value account and/or the premium structure (in a stock company) or the dividend structure (in a mutual company). Regardless of whether a company is stock or mutual, the policy has these characteristics:
- premiums are subject to change based on the experience (mortality, expenses, investment) of the company. The policyowner does notexercise any control over the changes.
- a policyowner can use the cash value to make loans just as with traditional ordinary life insurance.
- a minimum amount of cash value is guaranteed, just as with traditional ordinary life insurance.
- the death benefit does not fluctuate.
Popular Insurance Terms
Future benefits to be paid to the policyholders and beneficiaries, assigned surpluses, and miscellaneous debts. These primary liabilities take the form of reserves, which must be listed on ...
Table used by the Internal Revenue Service (IRS) in evaluating split dollar life insurance plans as to the extent of the economic benefit that is considered taxable ordinary income to the ...
Coverage on an all risks basis, subject to exclusions of war, wear and tear, loss resulting from delay, loss of market, infidelity of the insured's employee, loss due to rain, sleet, snow, ...
Federal legislation that established the old age survivors, disability, and health insurance (OASDHI). ...
To place insurance in force on an individual, individuals, or an organization. ...
Physician who conducts physicals of applicants for life and/or health insurance. This physician is selected by the insurance company at its expense. ...
Contract providing a monthly income benefit to members of a group of employees. A group annuity has the same characteristics as an individual annuity, except that it is underwritten on a ...
Same as term : Self Insurance: protecting against loss by setting aside one's own money. This can be done on a mathematical basis by establishing a separate fund into which funds are ...
Total of the insurance company's mortgages whose interest has not been paid for at least three months. These are mortgages upon which the insurance company is in the process of foreclosing, ...
Have a question or comment?
We're here to help.