Life Insurance and Life Settlement Terms - V
Valued Policy
A policy under which the insurer disburses a specified amount of money to or on behalf of the insured upon the happening of a defined loss. The money amount is not connected to the extent of the loss. A life insurance policy is an instance.
Vandalism
The malicious and frequently random destruction or spoilage of another person’s property.
Variable Annuity
An annuity whose contract value or income payments differ according to the performance of the stocks, bonds and other investments chosen by the contract proprietor.
Variable Life Insurance
A policy that unites protection against premature death with a savings account that may be invested in stocks, bonds, and money market mutual funds at the policyholder’s prudence.
Variable Premium Life Insurance Policy
A kind of nonparticipating whole life policy that specifies two premium rates—both a maximum guaranteed rate and a lesser rate. This is also known as nonguaranteed premium life insurance policy and variable premium life insurance policy.
Variable Universal Life (VUL) Insurance
A type of permanent life insurance that combines the premium and death benefit flexibility of universal life insurance with the investment flexibility and risk of uneven life insurance. With this kind of policy, the death benefit and the cash value fluctuate in accordance to the contract’s investment performance. This is also known as universal life II.
Viatical Settlement Companies
Insurance companies that purchase life insurance policies at a steep discount from policyholders who are often terminally ill and require the payment for medications or treatments. The companies give early payouts to the policyholder, assume the premium payments, and accumulate the face value of the policy upon the policyholder’s death.
Void
A policy contract that for some reason specified in the policy becomes free of all lawful effect. One instance under which a policy could be voided is when information a policyholder provided is proven false.
Volatility
A measure of the degree of fluctuation in a stock’s cost. Volatility is exemplified by huge, frequent price swings up and down.
Volcano Coverag
eMost homeowners policies include damage from a volcanic eruption.
Volume
Number of shares a stock trades either for each day or for each week.
Valuation
The method of calculating the proper values of an insurer’s assets, liabilities, and capital and surplus.
Variable Life Insurance
A type of whole life insurance under which the death benefit and the cash value of the policy fluctuate in accordance to the investment performance of a separate account fund. Most variable life insurance policies guarantee that the death benefit will not fall below a particular minimum.
