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
Policy that has an initial premium with flexible premiums thereafter. Within limits, a policy owner can select both the future amount and frequency of premiums, or can stop and start ...
Act that prohibits insurance companies, group health plans, and health maintenance organizations from establishing lifetime limits or annual limits on mental health coverage that are lower ...
Unallocated funding instrument for pension plans under which premiums are placed on deposit, and are not currently allocated to the purchase of benefits for the employee. At retirement, an ...
Statutory underwriting gain minus (or loss plus) policyholder's dividends. ...
Coverage if state or municipal law requires that a damaged or destroyed building must be rebuilt at an increased cost to comply with building code provisions that were not in effect when ...
Same as term Deposit Term Life Insurance: policy in which a premium (the deposit) is paid in the first policy year, in addition to the regular term insurance premiums required. The deposit ...
Particular type of inland marine insurance. ...
Determination that group plans offering legal services are limited to an annual tax-free benefit of $70 per employee; group plans may offer employer-provided educational assistance plans on ...
Federal law passed in 1920 that allows any seaman incurring bodily injury as the result of the performance of one or more functions of the job to bring a suit for damages against the ...
Have a question or comment?
We're here to help.