What is the definition of Single Premium Policies?
Single Premium Policies, as the name suggests, are life insurance policies or annuity contracts that can be bought by a single payment or lump sum. For this kind of policy or contract, the insurance or annuity is considered paid up at the time of its purchase.
This is a particularly attractive package for someone who has just inherited money, or for someone who can afford it and don't want the hassle of having to make periodical premium payments or are afraid of the negative effects/losses that are incurred when periodic premium payments are missed.
A Single Premium policy is no different from the other policies - the benefits depend on the age and health condition of the insured person. Also, the more money invested (the larger the single premium paid), the higher the benefit payments.
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- Soft Market
- Solvency
- Specified Disease Coverage
- Spendthrift Trust Clause
- Split-Dollar Life Insurance Plan
- Spread of Risk
- Stacking
- Standard Risk Class
- Statutory Accounting Principles (SAP)
- Stock Insurance Company
- Single Premium Annuity
- Short-Term Disability Income Insurance
- Shared Market
- Sewer Back-Up Coverage
- Severity
- Settlement Options
- Separate Account
- Self-Insurance
- Segregated Account
- Securitization of Insurance Risk