Definition Of Unbundled Life Insurance Policy In Insurance

Definition of "Unbundled life insurance policy"

Dan Sawyers, Real Estate Agent RE/MAX Preferred Properties

Coverage in which the investment features, mortality element, and cost factors of a life insurance policy are separated, permitting each part to be independently analyzed. The savings element of the policy then becomes interest-sensitive (rate of return paid to the policyholder is more consistent with the rate of returns earned by the life insurance company over a period of time than is the rate of return paid to the holder of a traditional life insurance policy).