Guarantee Cost Nonparticipating Life Insurance
Policy whose premiums, cash value, and face amount are guaranteed (all values are fixed and do not fluctuate according to the loss experience, expenses, and investment returns of the insurance company). The advantage of this policy to the policy owner is that, when the company experiences adverse conditions, they are not passed on to the policy owner. Likewise, the disadvantage of this policy to the policy owner is that the policy owner does not reap the benefits when the company experiences good conditions.
Popular Insurance Terms
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Policy that provides an income for life to the primary beneficiary upon the death of the insured. The face amount of the policy becomes payable to the secondary beneficiary upon the death ...
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