Private Replacement Variable Life (ppvl)
Definition of "Private replacement variable life (ppvl)"
Life insurance policy in which the cash value and in some circumstances the death benefit will vary according to the investment performance of an underlying portfolio usually comprised of equities. Thus, this product is considered to be a variable life insurance policy. In order for a PPVL policy to be sold in any state, the insurance company must be approved to distribute that product in the state and the product must be approved for distribution. Section 817 of the Internal Revenue Code, which discusses the tax treatment of variable policies, and Regulation 1.817.5, which discusses the diversification requirements for life insurance policies, variable dollar annuities, and endowment insurance policies, pertain to the tax considerations for the PPVL. All variable life insurance policies are considered securities and are subject to federal securities law. One life insurance product currently being directed on a private placement basis is corporate-owned variable LIFE INSURANCE.
Popular Insurance Terms
Factors on the application that must be evaluated in order to complete the underwriting process: age; sex; physical condition; personal health history; family health history; financial ...
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Policy designed to act as a supplement to Medicare. The supplementation is in the form of additional benefits to that provided by Medicare. The additional benefits are in the form of ...
Amount expressed as a liability on the insurance company's balance sheet for benefits owed to policy owners. These reserves must be maintained according to strict actuarial formulas as they ...
Optional provision in a disability income policy that allows the policyowner to increase the monthly income sum at an approximate rate of 6%. ...
Same as term Floater: coverage for property which moves from location to location either on a scheduled or unscheduled basis. If the floater covers scheduled property, coverage is listed ...
Group insurance contract under which a periodic (usually monthly) disability income benefit is paid to the insured as long as he or she remains disabled. ...
Partnership in which family members hold all interest in the partnership. This partnership is treated as a cash flow through stand-alone entity. All sums of income and credits, as well as ...
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