Persistency Bonuses (enhancements)
Financial incentives credited to the policy to encourage the policyowner to keep the policy in force. The incentives may be utilized by: (1) applying them to the policy cash value after a stipulated time period that the policy has been in force has expired; (2) after a stipulated minimum number of premium payments has been paid into the policy; or (3) after the policy's cash value has attained a stipulated minimum value. These financial incentives may be added to the policy in the following manner:
- Additional interest may be added to the policy's cash value.
- Mortality credit may be added to the policy's cash value.
- The policy's death benefit may be increased.
Popular Insurance Terms
Coverage in the event that stock sent to others for processing is damaged or destroyed en route or at their premises except those perils specifically excluded. For example, this coverage ...
Savings accounts that have tax advantages combined with health insurance plans for the benefit of the employee. Both the employee and the employer are permitted to contribute to the MSA. ...
Policy whose premiums, cash value, and face amount are guaranteed (all values are fixed and do not fluctuate according to the loss experience, expenses, and investment returns of the ...
Modified endowment insurance policy under which the insured receives one-half the death benefit as the maturity value of the policy. ...
Tax assessed by the states as a payroll tax on employers to pay for unemployment compensation ...
Insurance on the life of the employee, paid for by the company, with the company being the beneficiary under the policy. This insurance vehicle is being used more and more to fund ...
Section of the Internal Revenue Code that provides for SIMPLIFIED EMPLOYEE PENSIONS (SEP). ...
Same as term Graduated Life Table: mortality table that reflects irregularities from age to age due to chance fluctuations in the sequence of the rates of mortality. The rates of death as ...
Same as term Master policy: single contract coverage on a group basis issued to an employer. Group members receive certificates as evidence of membership summarizing benefits provided. ...
Have a question or comment?
We're here to help.