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
Expense of soliciting and placing new insurance business on a company's books. It includes agent's commissions, underwriting expenses, medical and credit report fees, and marketing support ...
Table charting relative costs of a group of cash value life insurance policies derived by using the net cost method of comparing costs (traditional net cost method of comparing costs; net ...
Mechanism used by a fidelity and surety insurance company to spread its liability through reinsurance by issuing a surplus treaty as a first layer of coverage, thereby enabling a cedent to ...
process of discovering sources of loss concerning the liability risk faced by individuals and business firms. The first step in risk management is to identify the causes of a loss by ...
Amount of the loss absorbed by an insurance company after deducting any reinsurance applicable to the loss, as well as subrogation and ABANDONMENT AND SALVAGE rights. ...
Formula for a given line of insurance used by property and casualty insurance companies to compare losses and loss adjustment expense with premiums. This shows the amount of each premium ...
Maximum amount of insurance that an insurance company will issue on a particular risk exposure. This limit is used by the insurance company to avoid having to pay for a loss on the exposure ...
Fund that comes into existence because premiums for ordinary life insurance policies in their early years are higher than necessary for the pure cost of protection. These excess premiums, ...
Coverage for an insured firm if its business debtors fail to pay their obligations. The insured firm can be a manufacturer or a service organization but it cannot sell its products or ...
Have a question or comment?
We're here to help.