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
Indemnifies an insured whose property is stolen, damaged, or destroyed by a covered peril. The term property insurance encompasses numerous lines of available insurance. ...
Association formed to address the requirements of government risk pools. ...
Coverage in which an insurance company's portfolio is ceded to a re insurer who re insures a given percentage of a particular line of business. ...
Same as term Calendar Year Experience: paid loss experience for the period of time from January 1 to December 31 of a specified year (not necessarily the current year). ...
Coverage in the event an insured's automobile is damaged, destroyed, or lost through fire, theft, vandalism, malicious mischief, collision, or windstorm. There are two kinds of property ...
Payment for coverage that remains throughout the same premium-paying period. ...
Means of projecting the costs of pension plans on a level basis over a specified future period of time. The actuarial value of each employee's future benefits to be paid at retirement is ...
Contracts of reinsurance in which expected income from investments is a major component of the UNDERWRITING process. Also, the ultimate liability of the reinsurer is limited. The reinsurer ...
Ending a pension plan at the election of an employer or sponsor. The employer has the unilateral right to change or terminate a pension plan at any time. However, the termination must meet ...
Have a question or comment?
We're here to help.