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
Product or service that does more harm than good to society, or endangers life or health. Society would probably be better off without such a product or service. ...
Liability of an insurance company for future claims that it expects to pay and for which a reserve has been established. ...
Circumstance that produces the loss. ...
The concept behind a Private Mortgage Insurance (PMI) is pretty simple: it exists to make sure the lender doesn’t lose its money. What it does is “buy” the possible ...
Denial of coverage for damage, in inland marine insurance, stemming from routine use of the property. Property can be expected to deteriorate somewhat over time from normal use. This is not ...
Sum provided by a disability income insurance that pays a multiple of the monthly indemnity to cover the costs associated with a retraining course attended by the insured wage earner when ...
Amount received by the policyholder if the policy is canceled, benefits are reduced, or the premium is reduced. ...
Same as term Date of Issue: date when an insurance company issues a policy. This date may be different from the date the insurance becomes effective. ...
Latin phrase meaning "without which not," signifying a legal rule in tort and negligence cases. Under this rule, a plaintiff trying to prove that an injury was a direct result of a ...
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