Flexible Premium Variable Life
Definition of "Flexible premium variable life"
Insurance that combines features of flexible premium life insurance and universal life insurance into one policy in the following manner:
- Premiums after the required minimum initial premium payment, premiums are flexible. The policy owner can select both their future amount and frequency, with certain restrictions that depend on the design of the policy. The policy owner can stop and start the premiums at his or her discretion, and a lump sum premium can be made at any time subject only to federal tax restrictions.
- Variable the death benefit may increase or decrease subject to the performance of an investment account of equities in which the premiums are placed. However, a minimum death benefit is guaranteed the initial face value of the policy. Cash values fluctuate according to the performance of this investment account.
Popular Insurance Terms
Judgment decision by the insurance agent concerning whether or not to submit an application. The decision is based on the agent's familiarity with the insurance company's underwriting ...
Ratio of the company's investment in noninvestment grade bonds dividend to its adjusted surplus. This ratio shows how vulnerable the company's surplus is to the market fluctuations in ...
Type of surety bond that is either a fiduciary or a court bond. Fiduciary Bond guarantees that individuals in a position of trust will safeguard assets belonging to others placed under ...
Investments restricted to short-term Treasury bills (T-bills) and repurchase agreements secured by Treasury bills. These T-bills are secured by the full faith and credit of the Unites ...
Measure of the sensitivity of the insurance company's liability to changing policy surrender distributions. ...
Means of distribution that uses general agents rather than branch offices to sell life and health insurance. ...
Detail showing distribution of property coverages written by an insurance company. Illustrates a potential danger of concentration of insured risks. ...
Clause in some disability income insurance policies under which there is a maximum an insured can receive from all sources of disability income benefits. For example, the clause may ...
Representation of ownership rights such as stocks. ...
Have a question or comment?
We're here to help.