Single Premium Variable Universal Life Insurance
Definition of "Single premium variable universal life insurance"
Type of universal variable life insurance policy that provides guideline premiums to be paid usually by the policy owner. Charges on a monthly basis usually include the cost of insurance, administrative expenses, premium tax, and in some instances, a contract fee. The policy owner may execute policy loans and in many instances on a zero cost basis if the policy loans come from the policy's gains. The policy owner may also make a partial cash surrender value of policy at no surrender charge for that portion of the premium not previously surrendered. When surrender charges are levied, they usually apply for the first 10 years that the policy is in force and range from 6 to 15% in the first year decreasing to zero by the end of the tenth year. Within the policy, the policy owner can effect tax-free transfers of funds among the sub-accounts in order to try to optimize the return.
Popular Insurance Terms
Insurance protection written in the form of a single line policy. ...
Plan that combines a profit sharing plan with a money purchase plan. It permits the participant to maximize the flexible part of the combination (profit sharing plan) after satisfying the ...
Policy that pays benefits to an insured who becomes ill or injured, provided that documentation is offered to confirm the illness or injury. ...
Abbreviation for premium payment. It usually applies to a limited number of annual premium payment policies such as a ten-day policy. ...
Beneficiary's choice, in a life insurance policy or annuity, for receiving income payments for a given period of time. The number of payments are fixed by the payee; the benefit amount is ...
Required minimum amounts of coverage that an insurance company will underwrite. For example, for auto liability coverage the minimum that many companies will write is $25,000. Most ...
Element of a life insurance policy permitting the policy owner to change a beneficiary as frequently as desired unless the beneficiary has been designated as irrevocable. Here the written ...
Property and/or liability coverage for a municipality. Municipalities are responsible for maintenance of through ways as well as a myriad of public services. Liability insurance for ...
Authority of states to tax the insurance companies they regulate. States levy income taxes, real and personal property taxes, and special levies, the most important of which is a premium ...
Have a question or comment?
We're here to help.