Vanishing Premium Life Insurance Law and Legal Definition
Vanishing premium life insurance is a life insurance policy bought as an investment in which large premiums are invested in a whole life policy that supposedly will be paid off in eight to ten years. After making a specific number of large payments, dividends on that money are supposed to cover future premiums. It is not a type of life insurance, but rather a method of premium payment. The vanishing premium method is used to illustrate how premiums can be reduced and vanish over time.
Legal Definition list
Related Legal Terms
- Abuse in Later Life Program [Department of Justice]
- Accelerated Life Insurance Benefits
- Accident Insurance
- Accidental Death and Dismemberment [Insurance]
- Accommodation Line [Insurance]
- Accountants Professional Liability Insurance
- Accounts Receivable Insurance
- Actual Cash Value Insurance
- Actual Delivery of Insurance Policy
- Actuarial Documents [Federal Crop Insurance Corporation]
