For Universal Life policies, this document is prepared at the end of each year, giving complete information on all transactions affecting the policy, such as premium paid, current death benefit, interest credited, loans outstanding, monthly charges, and cash surrender value.
Archives
Uniform Premium
A rating system that is used to calculate premiums for all insureds with no distinctions as to age, sex or occupation.
Step-rate Premium
Premium is increased at times specified in the policy, based on a predetermined attained age, or number of policy years in force.
Universal Life
A combination flexible premium, adjustable life insurance policy. The premium payer may select the amount of premium he or she can pay and the policy benefits are those which the premium will purchase; or, the premium payer may change the amount of insurance and pay premium accordingly. Many believe this is the only true solution to the “buy term invest the difference” problem.
Straight Life Policy
See Ordinary Life Policy.
Unscheduled Premium Payments
In Universal Life insurance, the policy owner can pay extra premiums in addition to the scheduled premium payment amount. These payments can be made at any time, but are subject to a minimum amount.
Substandard Risk
See Impaired Risk.
Valuation
Calculation of the policy reserve in Life Insurance.
Supplemental Contract
A rider usually relating to the method of settlement of the proceeds of a Life Insurance policy.
Values
Used in Life Insurance terminology as a shortened term for non-forfeiture values. See Non-forfeiture Values.