Front End Loaded Term
Same as term Deposit Term Life Insurance: policy in which a premium (the deposit) is paid in the first policy year, in addition to the regular term insurance premiums required. The deposit is left to accumulate at interest for a specific number of years, e.g., 10. Thereafter, the policy owner can receive the deposit plus interest or may renew the policy without the insured having to furnish evidence of insurability. This procedure can be repeated every 10 years, in some instances up to age 100. A deposit term policy can be converted to ordinary life, or decreasing term life insurance without evidence of insurability. However, if the policy owner cancels the policy prior to the initial 10 years, the deposit and any interest is forfeited. If the insured dies before the policy is converted, the deposit plus the interest is added to the death benefit.
Popular Insurance Terms
Investments made in a variety of securities issued by government agencies. ...
Professional designation earned after the successful completion of three national examinations given by the insurance institute of America (IIA). Covers such areas of expertise as ...
Employee benefit insurance plan whose objective is to provide the retired employee with life insurance. This group life insurance product is composed of two basic parts: annually renewable ...
Requirement that the combination of medicare and the employer's plan can not be greater than the amount the employer's plan would pay without Medicare. ...
Law that places limitations on an uninsured motor vehicle owner or motor vehicle operator's ability to recover damages in the event of a motor vehicle accident. The state of Louisiana ...
Provision for every citizen of the United States to be guaranteed by law the right to purchase health insurance and is required by law to make such a purchase. ...
Life insurance company or property and casualty insurance company licensed by a particular state to conduct business there. The company is subject to the state insurance code governing such ...
Insurance coverage for the named insured and his or her eligible dependents. ...
Contract providing a monthly income benefit to members of a group of employees. A group annuity has the same characteristics as an individual annuity, except that it is underwritten on a ...
Have a question or comment?
We're here to help.