Single-Premium Life Insurance
Definition
- A type of life insurance policy where a single lump sum premium is made up front instead of over time. A single-payment life insurance policy guarantees that the life insurance policy will be fully funded and that a death benefit will be available to the beneficiaries.
Synonyms
up-front life insurance, pre-paid life insurance, single-payment life insurance
Related Terms and Acronyms
- Convertible Life Insurance — Definition,
- A type of term life insurance policy that has the option to be converted into a permanent life insurance policy such as whole or universal life insurance.
- Death Benefit (DB) — Acronym, Very Important,
- A payment or series of payments made to the beneficiaries of a life insurance policy.
➥ An amount paid to a beneficiary in a life linsurance policy. - Life Insurance — Definition, Very Important,
- An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
➥ CanEquity offers life insurance. - Lump Sum Payment — Definition,
- One-time single-sum payment or payout.
- An extra payment made to reduce a loan.
- Permanent Life Insurance — Definition,
- A class of life insurance policies, which include both universal and whole life insurance, with guaranteed death benefits at the end of their terms.
- Pre-paid Insurance — Definition,
- A insurance policy where insurance premiums are all paid in advance, normally offered in one year terms.
- Single Premium Deferred Annuity (SPDA) — Acronym,
- A deferred annuity funded with a single payment.
- Term Life Insurance — Definition,
- Life insurance that provides coverage for a set period of time, often from five to forty years.
- Universal Life Insurance — Definition,
- A form of life insurance that offers flexible investment options and tax efficiency for estate management.
- Whole Life Insurance — Definition,
- Permanent life insurance with level premiums for the policyholder's entire lifetime.
