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
Early type of no-fault automobile insurance developed by two law professors, Robert Keeton and Jeffrey O'Connell. Its basic premise is that for many accidents it is impossible to place the ...
Net profit of a business, less dividends. Reinvestment of retained earnings enables an insurance company to write more business from a stronger capital base. Contributions to retained ...
Pension plan participant's retirement benefit credited for prior years of recognized service with the employer prior to a specific date. ...
Theory developed in 1931 by H. W. Heinrich; states that an accident is only one of a series of factors, each of which depends on a previous factor in the following manner: accident causes ...
Under a general liability policy, a claim by an employer arising when an employee terminated by a supervisor without authority or just cause brings suit against the employer. Such a claim ...
List of injuries and diseases covered in a health insurance policy. Consumers are well advised to read and understand the definitions of injuries and diseases in a health insurance policy. ...
Damaged insured property in receipt by the insurance company resulting from abandonment and salvage, subrogation, and reinsurance. ...
Frequency of premium payment; for example annually, semiannually, quarterly, or monthly. ...
Observance of an event occurring on a repeated basis that leads one to believe that a certain probability is attached to the occurrence of that event. For example, if there are a red ball ...
Have a question or comment?
We're here to help.