Group Paid-up Life Insurance
Combination of two basic plans: accumulating units of paid-up permanent life insurance, and decreasing units of group term life insurance. The premium paid each month consists of the (a) employee's contribution and (b) employer's contribution. The employee's portion purchases increments of paid-up insurance, and the employer's portion purchases group decreasing term. The employer's contribution is tax deductible as a business expense, and these contributions are not taxable income to the employee. (However, if the employer purchases increments of paid-up units of permanent insurance, these contributions are taxable income to the employee on a current basis.) Paid-up units purchased by an employee are vested and thus can be taken as a paid-up life benefit regardless of the reason for termination of employment. The paid-up benefit will always remain in force; no further premium payments are required.
Popular Insurance Terms
Maximum limit of liability of an insurance company for a particular claim or kind of loss that is applicable in general to all such claims or losses. This maximum limit of liability is ...
Record prepared by the rating bureau describing the particulars of an insured property and the applicable premium rate. ...
Statutory law that lowers the defendant's liability by restricting the monetary recovery of the plaintiff incurring a specified injury, such as pain and suffering, or by restricting the ...
Company in which shareholders limit their liability exposure to their percentage of ownership or equity interest in the company. Shareholders' personal assets are protected in the event of ...
Federal legislation requiring employers with traditional health plans to also provide an HMO to its employees. The act also makes it mandatory for employers to contribute as much to the HMO ...
Costs associated with the selling of a new insurance policy to a policyholder. The costs include the acquisition commission as a percentage of the first year's premium, underwriting ...
Coverage that can be converted into permanent insurance regardless of an insured's physical condition and without a medical examination. The individual cannot be denied coverage or charged ...
What is SSDI? It is a form of financial aid for people living with a disability that impacts their quality of life. As one of the largest Federal programs designed to provide assistance to ...
Same as term: Beneficiary; Beneficiary Clause: ...
Have a question or comment?
We're here to help.