Front End Loaded Term
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 is left to accumulate at interest for a specific number of years, e.g., 10. Thereafter, the policy owner can receive the deposit plus interest or may renew the policy without the insured having to furnish evidence of insurability. This procedure can be repeated every 10 years, in some instances up to age 100. A deposit term policy can be converted to ordinary life, or decreasing term life insurance without evidence of insurability. However, if the policy owner cancels the policy prior to the initial 10 years, the deposit and any interest is forfeited. If the insured dies before the policy is converted, the deposit plus the interest is added to the death benefit.
Popular Insurance Terms
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In property insurance policy, clause that stipulates that if legislative acts or acts of the insurance commissioner's office expand the coverage of an insurance policy or endorsement forms ...
Amount received by the policyholder if the policy is canceled, benefits are reduced, or the premium is reduced. ...
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Same as term Corridor Deductible: type of major medical deductible amount that acts as a corridor between benefits under a basic health insurance plan and benefits under a major medical ...
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