Liquidation Charge
Definition of "Liquidation charge"
Amount subtracted from an annuity or from mutual fund proceeds payable to an annuity owner or mutual fund owner to reflect expense fees described in the annuity contract or mutual fund prospectus. This charge may be viewed as a penalty for cashing in the annuity or mutual fund early. This fee is meant to discourage early withdrawal of funds and/or to enable the company to recoup its expenses associated with marketing, administering, and liquidating the product.
Popular Insurance Terms
Trust that is established by people still alive. ...
1965 federal law that provides for medical assistance to those who cannot afford to pay for it. Four categories of the needy can qualify: aged, blind, disabled, and families with dependent ...
System established for checking claims to determine whether they should be paid immediately or checked further for validity. ...
Premium paid before the due date. For example, a premium is due on July 1, 2000, but the insured actually makes the premium payment on January 1, 2000, receiving a premium discount. ...
Includes rate of return, how long the annuity's interest rate is guaranteed, loads (front, middle and back), financial ranking of the insurance company offering the annuity, the monthly ...
Method used to determine the policyholder's return on premiums paid into a life insurance policy. This method is illustrated in two ways:.Surrender of Policy Approach calculation of the ...
Type of grantor-retained income trust (grit) in which the grantor retains the right to the assets of the trust should he or she die before the term of the trust expires. ...
Type of inland marine insurance used to provide coverage for domesticated animals, including poultry, cattle, horses, sheep, and swine. ...
Monthly income payment provided by a Disability income insurance policy to the insured wage earner when income has been interrupted or terminated because of illness, sickness, or accident. ...
Have a question or comment?
We're here to help.