Reverse-annuity Mortgage (ram)
Definition of "Reverse-annuity mortgage (ram)"
Loan under which the owner of a home receives the equity in the form of a series of monthly income payments for life. Upon the owner's death, the lender institution (usually a bank) gains title to the home and is free to keep or sell it. The longer that monthly income payments are made, the greater the reduction in the owner's equity in his or her home. This type of mortgage is of value to older individuals who own their homes free and clear. Their large equity enables them to continue to live there and to receive a monthly income benefit.
Popular Insurance Terms
Same as term Debit Insurance: life insurance on which a premium is collected on a weekly, bi-weekly, or monthly basis, usually at the home of a policyholder. The face value of the policy is ...
Reduction in rate reflecting the present value of a premium due on an annuity one year hence. ...
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Coverage for the federal government in the event of loss due to dishonest acts of federal government employees. ...
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Point in time when a term life insurance policy terminates its coverage. ...
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