Single Premium Variable Universal Life Insurance
Definition of "Single premium variable universal life insurance"
Type of universal variable life insurance policy that provides guideline premiums to be paid usually by the policy owner. Charges on a monthly basis usually include the cost of insurance, administrative expenses, premium tax, and in some instances, a contract fee. The policy owner may execute policy loans and in many instances on a zero cost basis if the policy loans come from the policy's gains. The policy owner may also make a partial cash surrender value of policy at no surrender charge for that portion of the premium not previously surrendered. When surrender charges are levied, they usually apply for the first 10 years that the policy is in force and range from 6 to 15% in the first year decreasing to zero by the end of the tenth year. Within the policy, the policy owner can effect tax-free transfers of funds among the sub-accounts in order to try to optimize the return.
Popular Insurance Terms
Payment made by a party causing harm to the party incurring that harm. ...
Coverage of an employee group whose members receive a monthly disability income benefit, subject to a maximum amount, if illness or accident prevents a member from performing the normal ...
Method of funding a pension plan after a worker retires. An employer purchases an annuity or sets aside a sum when an employee retires that will pay monthly lifetime benefits. ...
Feature of life and health insurance policies that stipulates that the policy represents the whole agreement between the insurance company and the insured, and that there are no other ...
List of injuries and diseases covered in a health insurance policy. Consumers are well advised to read and understand the definitions of injuries and diseases in a health insurance policy. ...
Investment risk associated with the psychology of the market in that emotions affect the price of a company's stock that, in most instances, has nothing to do with the current or potential ...
Coverage for exposures that exhibit a possibility of financial loss. ...
Statement of the financial condition of the insurance company, as well as significant events during the year in which the company has been involved and/or that have affected the company. ...
Policyholder's equity share of the life insurance company's assets. The share is based on the policyholder's contribution to assets (the company's gross premiums minus cost of insurance, ...
Have a question or comment?
We're here to help.