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
Insurance that acts as a supplement to medicare in that it will pay the deductibles and coinsurance sums that the Medicare recipient is responsible for paying. In addition, some policies ...
The definition of contract of adhesion or, as it is also known, an adhesion contract is explained as an agreement between two parties where one party has more power than the other when the ...
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 ...
Entitlement of a pension plan participant (employee) to receive full benefits at normal retirement age, or a reduced benefit upon early retirement, whether or not the participant still ...
Information needed for underwriting a life insurance policy, such as an applicant's age, weight, height, and build; personal and family health record; occupation; and personal habits. These ...
Method whereby an insurer pays the amount of each claim for each risk up to a limit determined in advance and the reinsurer pays the amount of the claim above that limit up to a specific ...
Type of coverage of property owned by one person at several locations, including merchandise, materials, fixtures, furniture, specified machinery, betterments, and improvements made by ...
Effective January 4, 1994, the backup withholding rate on dividends, interest, and gross proceeds distributions increased from 20% to 31%. Backup withholding applies in the following ...
Section of the code that qualifies that the death benefit paid under a life insurance policy is received by the beneficiary income-tax free. These tax consequences apply regardless of the ...
Have a question or comment?
We're here to help.