Group Permanent Life Insurance
Definition of "Group permanent life insurance"
Coverage following the same structure as group term, the significant difference being that premiums go toward the purchase of permanent insurance instead of term insurance. The employee has a vested interest in the increments of paid-up insurance purchased. Because of the tax consequences to the employee, group permanent insurance usually is applied to fund retirement plans such as pensions instead of providing life insurance coverage. If the employer purchased permanent insurance on the employee's behalf, the contributions would become taxable income to the employee on a current basis. Group life insurance is experience rated, in that the loss experience of the entire group determines the premium rate applied to each employee.
Popular Insurance Terms
Historical mortality table that replaced the group annuity table, 1951, whose statistics at that time were more current than the replaced table. This table was subsequently replaced by the ...
Agents' records showing when clients' policies expire. ...
Combination of the funds of many policyholders held in a single account and invested as a single entity. ...
Approved or accepted policy for a particular type of risk. The only type of risk covered by a standard form mandated by law is the fire policy. In 1886, New York adopted a standard fire ...
Low-cost life insurance providing coverage only for a limited time, such as one year, five years, or to age 65. Term insurance costs less at younger ages than a comparable amount of CASH ...
Coverage for a loss incurred by the insured resulting from an infringement of the insured's patent or coverage for a claim made against the insured resulting from infringement by the ...
Physical contact of an automobile with another inanimate object resulting in damage to the insured car. Insurance coverage is available to provide protection against this occurrence. ...
Financial incentives credited to the policy to encourage the policyowner to keep the policy in force. The incentives may be utilized by: (1) applying them to the policy cash value after a ...
Inability of the insured to perform one or more of the important daily duties of that insured's occupation. The income payment to the insured is reduced from that of total disability. ...
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