Vanishing Premium Provision


Definition of "Vanishing premium provision"

Maggie Privette real estate agent
Maggie Privette, Real Estate Agent The Cornerstone Group

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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