In-depth exploration of the 7-Pay Test, an IRS mechanism to determine if a life insurance policy qualifies as a Modified Endowment Contract (MEC).
A provision within some life insurance policies that allows the policyholder to receive a portion of the death benefit in advance under specific circumstances, such as terminal illness.
Convertible Term Insurance offers policyholders the flexibility to convert their term life insurance policy into a permanent life insurance policy without medical underwriting.
An in-depth look at Convertible Term Policy, its historical context, types, key events, mathematical formulas, importance, applicability, and more.
The amount paid to the beneficiaries upon the policyholder's death. In variable life policies, this amount can vary based on account performance.
An endowment mortgage is a type of mortgage where the borrower pays only the interest on the loan while also contributing to an endowment policy, which typically includes life insurance.
An in-depth exploration of Endowment Policies - life insurance contracts designed to pay a lump sum after a specific term or upon death.
An in-depth look at Equity-Linked Assurance, a type of life insurance where benefits are linked to equity share prices, including historical context, key features, examples, and considerations.
An Executive Bonus Plan is a life insurance policy provided to top executives as part of their compensation package, offering tax benefits and motivating key employees.
Expat Insurance provides specialized insurance coverage for individuals living outside their home country, often including worldwide coverage for health, life, and other insurance needs.
The Expected Mortality Rate is the average mortality rate anticipated based on demographic and underwriting data. It is a critical metric used in actuarial science, life insurance, public health, and epidemiology.
The face amount is the amount of money stated on a life insurance policy that will be paid upon the insured's death or at policy maturity.
A comprehensive overview of Friendly Societies, non-profit-making institutions in the UK that offer small savings and life insurance to members.
Understanding the front-end charge applied by investment and insurance management firms on initial investments. This entry covers its types, importance, and implications.
A comprehensive exploration of guaranteed issue insurance, a type of policy that is issued without medical underwriting, guaranteeing coverage but often at higher premium costs.
An in-depth look at Insurance Companies, their historical context, types, key events, importance, applicability, examples, and more.
Life assurance, often interchangeable with life insurance, provides financial protection and peace of mind through long-term policy plans.
Detailed exploration of the term 'Life Assured,' including historical context, types, key events, importance, examples, and more.
Life insurance, or assurance, is a contract that provides an agreed sum to the policy-holder's estate upon death before an agreed date or to the policy-holder upon survival. This article explores types of life insurance, key events, mathematical models, charts, significance, applicability, examples, considerations, related terms, comparisons, facts, quotes, jargon, FAQs, references, and a final summary.
Living Benefits are provisions in life insurance policies that allow policyholders to receive benefits while still alive under certain conditions, providing financial support in critical times such as terminal illness or long-term care needs.
An in-depth exploration of Loan Value, including its definition, historical context, types, key events, explanations, and real-world applications.
A comprehensive overview of Modified Endowment Contracts (MECs) within life insurance, including definitions, types, historical context, applicability, comparisons, related terms, FAQs, and more.
An alternative method to calculate life insurance needs by multiplying the insured's annual income by a set number of years.
Explore Non-Forfeiture Options in life insurance policies, detailing historical context, types, key events, mathematical models, examples, and FAQs.
Non-Par Policies do not pay dividends and typically have guaranteed death benefits and cash values without the potential for additional surplus distributions.
A type of permanent life insurance that offers flexibility in premiums and death benefits but does not provide policyholder dividends.
Paid-Up Additions are additional coverage purchased using dividends from a life insurance policy that requires no further premium payments.
Par Universal Life is a type of life insurance that offers flexible premiums and death benefits, along with the potential for dividends.
A comprehensive overview of Participating Policies (Par Policies) which pay dividends to policyholders, potentially increasing cash values and death benefits based on the insurer’s performance.
Renewable Term Insurance is a type of life insurance policy that allows the policyholder to renew coverage without undergoing medical underwriting. Ideal for those seeking flexibility and continued coverage.
A comprehensive look at the Return of Premium Rider, a feature in life insurance policies that refunds the premiums paid if the policyholder outlives the policy term.
Servicemembers’ Group Life Insurance (SGLI) is a low-cost, group term life insurance program for active-duty members of the uniformed services. It provides financial protection in the event of death or injury.
Sum Assured refers to the guaranteed amount paid to the beneficiary by the insurance company in the event of the policyholder’s demise.
The surrender value is the amount paid by an insurance company to the policyholder when a life insurance policy is terminated before maturity. It is calculated by deducting costs and charges from the total premiums paid.
A comprehensive guide on Term Conversion Options in life insurance, including types, importance, applicability, examples, and frequently asked questions.
Term insurance provides life insurance coverage for a specified period, typically requiring lower premiums, with no cash value accumulation or nonforfeiture options.
An in-depth look into Variable Universal Life Insurance, combining death benefit protection with investment options within a single tax-deferred account.
A detailed exploration of viatical settlement providers, who purchase life insurance policies from policyholders diagnosed with terminal illnesses.
An in-depth exploration of with-profits life insurance, including historical context, types, key events, mathematical models, diagrams, importance, applicability, examples, considerations, related terms, comparisons, facts, quotes, proverbs, expressions, jargon, slang, FAQs, and references.
The concept of 'Amount at Risk' is critical in both life and property insurance, serving as a measure of the insurer's potential financial exposure.
A detailed examination of Annual Renewable Term Insurance, including its characteristics, benefits, drawbacks, examples, and comparisons with other life insurance types.
An insurance coverage designed to maintain business operations as closely to normal as possible in the event of a loss of a key person, owner, or partner.
Detailed explanation of the cash surrender value in life insurance, including factors affecting the amount, taxation, and related terms.
Cash Value Life Insurance combines permanent insurance protection with a savings element that accumulates cash value over time.
Informal phrase describing the 'needs approach' to determine the amount of life insurance necessary for a family, covering last-minute expenses and those that arise after the death of an insured, such as burial costs, probate charges, and medical bills.
The Commutation Right is the privilege of a beneficiary to take unpaid income payments under a settlement option of an annuity or life insurance policy in the form of a lump sum.
'Convertible Term Life Insurance' refers to a term life insurance policy that can be converted into a permanent insurance policy, irrespective of the insured's physical condition and without necessitating a medical examination.
The Cross-Purchase Plan is a type of business succession plan used predominantly in partnerships and small corporations to ensure smooth ownership transitions in the event of a partner's death or disability. This plan involves partner-owned life insurance policies designed to fund the buyout of the deceased or disabled partner's interest.
The death benefit is the amount of money paid to beneficiaries upon the death of a life insurance policyholder. It is typically the face value of the policy minus any unpaid loans or claims against the policy.
An overview of dependent coverage in life and health insurance policies, including definitions, types, special considerations, examples, and applicability.
In life insurance, a dividend addition refers to the increase in policy value, purchased with the dividends generated by the policy, and added to the original face value.
A comprehensive overview of Family Income Policy, a type of insurance policy that provides supplementary income during the period when children are growing up.
Guaranteed Insurability is a feature in life insurance policies that allows policyholders to purchase additional insurance without a medical exam at specified times, such as stated times, upon the birth of a child, or during specified policy anniversaries.
An explanation of the incontestable clause in a life insurance policy, which prevents the insurer from voiding the policy due to misrepresentation or concealment by the insured after a specified period.
An Indexed Life Insurance policy has a face value that varies in accordance with a prescribed index, such as the Consumer Price Index (CPI), offering benefits similar to ordinary whole life insurance.
Individual Life Insurance refers to a type of life insurance policy that covers a single life in contrast to Group Life Insurance, which covers multiple lives. This guide provides an overview of its types, special considerations, historical context, and applicability.
A comprehensive exploration of insurability, the circumstances under which an insurance company can issue life or health insurance to an applicant based on the company's standards.
Interest Sensitive Policies are a newer generation of life insurance policies that are credited with interest currently being earned by insurance companies on these policies. They offer flexibility and can be tailored to changes in interest rates over time.
Key Person Insurance provides financial protection to businesses if a key individual suffers from death, disability, sickness, resignation, incarceration, or retirement.
Key Person Life and Health Insurance provides financial protection to businesses against the loss of key employees through death or disability, ensuring business continuity and risk management.
A comprehensive overview of life insurance, including types, benefits, and key considerations.
An in-depth exploration of renewable term life insurance, a coverage option that allows the insured to renew without a medical examination and premium changes that only reflect the insured's age.
An in-depth exploration of the living benefits of life insurance, focusing on features, types, examples, and considerations.
Comprehensive definition and explanation of Lump Sum in life insurance, emphasizing single payment instead of a series of installments.
The maturity date is a crucial term in finance and insurance that signifies the time at which a bond, life insurance proceeds, or endowment are paid. It can be either at the death of the insured or at the end of the endowment period.
A comprehensive overview of medical examinations, often required for life and/or health insurance applicants to determine their eligibility and risk classification.
An in-depth guide to understanding mortgage life insurance, its benefits, types, considerations, examples, and frequently asked questions.
An in-depth exploration of nonforfeiture provisions in life insurance policies, detailing the various options available to policyholders to protect their benefits.
A comprehensive definition and explanation of a Paid-Up Policy in life insurance, including types, examples, historical context, and frequently asked questions.
A detailed overview of Participating Insurance Policies, explaining how they pay dividends to policy owners.
Partnership Life and Health Insurance offers protection to maintain the value of a business in case of death or disability of a partner. It ensures the transfer of the deceased or disabled partner's interest to the surviving partners according to a predetermined formula.
A policy loan is a loan from an insurance company secured by the cash surrender value of a life insurance policy. Learn more about its types, benefits, and limitations.
An in-depth look at Rated Policies in life insurance where applicants are charged higher premiums due to unique risk factors like medical history, occupation, or hobbies.
Reinstatement is the process of restoring a lapsed insurance policy due to nonpayment of premiums, involving various requirements such as evidence of insurability and payment of past premiums plus interest.
A Salary Continuation Plan is an arrangement, often funded by life insurance, to continue an employee's salary through payments to a beneficiary for a certain period after the employee's death.
An in-depth guide on Single Premium Life Insurance, a coverage in which one premium payment is made and the policy is fully paid up with no further premiums required.
Detailed exploration of Split Dollar Life Insurance policies, including structure, premiums, ownership rights, death proceeds, types, and examples.
Understanding the Suicide Clause in Life Insurance Policies and its implications.
Detailed overview of the taxation on interest earned from dividends left on deposit with an insurance company, especially in the context of participating life insurance policies.
Comprehensive definition and explanation of the term, including its applications in contracts, loans, and life insurance policies.
Term Life Insurance provides coverage for a specific period, offering death benefits if the insured passes away during the term while providing no residual value if the insured survives the term.
A variable annuity is a type of life insurance where the value fluctuates with an underlying securities portfolio or index performance.
Voluntary Employees' Beneficiary Association (VEBA) is an organization that provides life, sickness, or accident benefits to individuals who share an employment-related bond.
Whole Life Insurance offers lifetime protection and cash surrender value at a guaranteed rate. It is synonymous with ordinary or straight life insurance and provides fixed annual premiums that do not rise as the insured ages.
A comprehensive guide to understanding 1035 exchanges, including the definition, rules, process, and key considerations for tax-free exchanges of annuity contracts, life insurance policies, or endowments.
Annuitization is the process of converting an annuity investment into periodic income payments. This concept is commonly used in life insurance payouts. Understand the definition, process, examples, and special considerations in this comprehensive coverage.
An in-depth look at Automatic Premium Loans, a common feature in life insurance policies allowing insurers to cover premium payments by utilizing the policy’s cash value.
Understanding how death benefits from life insurance policies, annuities, or pensions are taxed and who is eligible to claim them.
A detailed exploration of Decreasing Term Insurance, covering its definition, examples, benefits, drawbacks, and more to help you understand this specific type of life insurance policy.
A comprehensive guide to free look periods in life insurance, detailing how policyholders can terminate their new policies without penalties during this timeframe.
Group Term Life Insurance is a type of life insurance policy commonly offered as an employee benefit. This comprehensive entry discusses its mechanics, benefits, and potential drawbacks, along with options for customization.
Explore the essentials of Group Universal Life Policy, including its meaning, advantages, disadvantages, FAQs, and how it compares to individual policies.
Explore the details of Guaranteed Issue Life Insurance, including its definition, workings, benefits, types, and special considerations. Learn how to make informed decisions with comprehensive coverage on this type of insurance.
Comprehensive overview of hazardous activities in life insurance, including definitions, alternative coverage options, and key examples.
Comprehensive guide to the Human-Life Approach in insurance, covering definition, value calculation, example, and its importance in determining life insurance needs.
Explore the comprehensive guide to Key Person Insurance, including its definition, cost considerations, various types, and detailed workings. Understand why this insurance is crucial for safeguarding a business against the loss of key personnel.
A detailed exploration of the level death benefit in insurance, how it functions, its advantages, and a practical example.
Unlock the complete understanding of life insurance: what it is, how it works, and how to effectively purchase a policy tailored to your needs.
Understanding life settlements, how they work, their benefits, and frequently asked questions.
A detailed analysis of Modified Endowment Contracts (MECs), their definition, tax implications, different categories, historical context, and practical examples.
