Indexed Life Insurance
Policy with a face value that varies according to a prescribed index of prices; otherwise benefits provided are similar to ordinary whole life. The death benefit is based on the particular index used, such as the Consumer Price Index (CPI). The policy owner has the choice of having the index applied either automatically or on an elective basis. With an automatic index increase, the premium remains level since it has already been loaded to reflect the automatic increase. If the policy allows for an optional index increase, an extra premium is charged when this option is exercised by the policy owner. Regardless of which index is selected automatic or optional the increased death benefit does not require another physical examination or other evidence of insurability.
Popular Insurance Terms
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Insurance company that does not utilize the rates and policies of a rating bureau. ...
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Capacity of parties to an insurance contract to understand the meanings of their action in order for the contract to be valid. ...
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Life insurance under which an insured receives the face value of a policy if the individual survives the endowment period. If the insured does not survive, a beneficiary receives the face ...
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