Indeterminate Premium Life Insurance

Definition of "Indeterminate premium life insurance"

Sue Boynton, CLHMS, ABR®
Sue Boynton, CLHMS, ABR® Pinehurst Resort Realty

Nonparticipating life insurance under which the first few annual premiums are smaller than would be the case under a traditional nonparticipating policy. While the maximum amount of these initial premiums is guaranteed, future premiums can be increased, but not beyond a guaranteed maximum. Adjustments to premiums reflect the insurance company's anticipated mortality experience, investment return, and expenses. If these three elements are more profitable than had been loaded for in the initial premiums, future premiums will be reduced; if less profitable, they will be increased, but not greater than the guaranteed maximum.

Search Real Estate Glossary

Related Real Estate Glossary terms

Related Real Estate FAQ