Life Income Policy
Definition of "Life income policy"
Policy that has many similar characteristics to that of the survivor-ship annuity in that the annuitant receives a predetermined monthly income benefit for life upon the death of the insured. The annuitant's life expectancy as well as the insured's life expectancy must be taken into consideration when determining the premium; thus, the annuitant cannot be changed after having been selected. The essential difference between this policy and the survivor-ship annuity is that under this policy a minimum number of payments are guaranteed to be paid after the insured's death, regardless of whether or not the annuitant is alive to receive them. If the annuitant does not survive the guarantee period (period certain), a contingent annuitant will receive the remaining guaranteed monthly income payments.
Popular Insurance Terms
Special insurance that covers warehousers liability to customers whose property is damaged by an insured peril while in the custody of an insured warehouser. Policy deductibles may range ...
Same as term Cost-Of-Living Adjustment: automatic adjustment applied to Social Security retirement payments when the consumer price index increases at a rate of at least 3%, the first ...
Excess coverage for employers who use self insurance for routine workers compensation risks. Many employers consider workers compensation exposure to be routine and predictable and set up a ...
Agents, managers, and office personnel serving in the branches of an insurance company. ...
Costs associated with the selling of a new insurance policy to a policyholder. The costs include the acquisition commission as a percentage of the first year's premium, underwriting ...
Individual action or failure to act as a reasonably prudent person would under similar circumstances, resulting in harm to another. Also called negligence. A reasonably prudent person is ...
Dividends paid historically, currently, and projected. ...
Amount added to the basic premium (expectation of loss) to cover an insurance company's expenses. These expenses include agent commissions, premium taxes, costs of putting a policy on the ...
New pension-accounting rule (Employers Accounting for Post retirement Benefits Other Than Pensions) which mandates that employers that provide post retirement benefits to include life ...
Have a question or comment?
We're here to help.