YOU ASK:
What is the definition of Ordinary Life Insurance?
WE ANSWER:
Ordinary Life Insurance is the kind of insurance that lasts for as long as the insured person lives. The premiums are set so that the insurance is in force for the lifetime of the insured or at most, until the insured lives up to a hundred years old. The normal maturity period of this insurance is 100.
The Ordinary Life Insurance also has a savings component by virtue of its cash value. The policyowner pays level premiums, where a portion of the premiums is used to build a cash value. This cash value grows with a guaranteed interest rate.
Ordinary Life Insurance has nonforfeiture options when the policyowner decides to stop paying premiums.
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