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
Probability of one's living to a specific age according to a particular mortality table. Life expectancy is the beginning point in calculating the pure cost of life insurance and annuities ...
Irrevocable living trust (rights to make any changes are forfeited by the grantor permanently) in which the grantor forfeits control of all assets placed in the trust. However, the grantor ...
Society dedicated to the advancement of professional standards of risk management. Its membership is composed of risk and insurance managers of business organizations, public organizations, ...
Provision for coverage for buildings and personal property within the simplified commercial lines portfolio policy (sclp). The buildings and personal property coverage may be classified in ...
Coverage in the event of a marine loss. Marine loss is damage or destruction of a ship's hull and the ship's cargo (freight) as the result of the occurrence of an insured peril. Perils ...
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. ...
Top state regulator of the insurance business who is either elected to office or appointed by a state to safeguard the interests of policyowners. ...
Value or cost of the actual net protection, in life insurance, in any year (face amount less reserve) according to the yearly renewal term rate used by an insurance company. ...
Type of policy with premiums that are fully paid up within a stated period. For example, a 20-payment life insurance policy has 20 annual premium payments, with no further premiums to be ...
Have a question or comment?
We're here to help.