Vanishing Premium Provision

Definition of "Vanishing premium provision"

Nancy Davis, <br>Terri Anderson & Rosemary Fox
  Anderson Davis Real Estate Inc

Clause in a life insurance policy that states that once the cash value exceeds the net single premium (based on current interest and mortality rates) required for the policy to become paid-up insurance, the policy owner may elect not to make further premium payments. If the cash value falls below the amount necessary to fund the net single premium, additional premium payments are required.

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