Definition of "Multiple protection life insurance policy"
Toni McCall, Real Estate Agent
Coldwell Banker
Single life insurance policy combining term life insurance and ordinary life insurance. If the insured dies during the term period, a multiple of the face amount is paid to the beneficiary. If the insured dies after the term period has expired, only the face amount is paid to the beneficiary. For example, if the insured dies during the first 10 years that the policy is in force, three times the face amount is paid to the beneficiary; after the 10 years expires, the single face amount is paid to the beneficiary. Thus, during the multiple protection period both term insurance and ordinary life insurance are in force; after the multiple protection period expires, only ordinary life insurance is in force.
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