Premiums
Payment of this premium is required to take advantage of a policy protection period feature that prevents policy lapse in early contract years with low contract funding.
Often referred to as a monthly per thousand charge.
What is a Unit Load?
When electing this type of loan, loaned amounts will be transferred from the various interest crediting strategies and placed in a segregated loan collateral account which will be credited with interest.
What is a standard loan?
What is Bonus Types?
This term is used to describe the action of money transferring from a holding fund into fixed and indexed interest funds per allocation elections.
What is a sweep?
The number of premiums currently illustrated on a true SPDA.
What is one?
The amount subtracted from the AV in the event that the policy holder fully surrenders their policy during the first n policy years from the date of issue or the date of an increase in base face amount.
What is surrender charge?
When this loan type is selected, your loaned balance may receive a different bonus rate than your unloaned account value. This is only available for policies with AVE23/Bonus Method 9.
What is PDL?
This bonus type is designed for a person with a moderate to an aggressive outlook on the index who wants a higher potential bonus in exchange for the a cost which varies based on how moderate aggressive the outlook.
What is FAVE?
The maximum earnings percent that will be credited to an indexed strategy.
What is a Cap?
An existing in-force policy is transferred into a new policy is known as this.
What is a 1035 exchange?
This is the transaction code for charges in Life Vantage.
What are XA transactions?
For this loan type, requested loan amounts will be transferred from the various interest crediting strategies and placed in the Indexed Loan Holding Account.
What is PFL?
When illustrating this no cost bonus type, the enhancement credits a bonus based on the interest earned on the allocation strategies throughout the policy year and is credited at end of the policy year to their respective account values.
The maximum percentage of the annual increase in an index that will be credited.
What is a Par Rate?
In order to receive favorable federal tax treatments on income taken from your policy, IRC section 7702A defines this type of premium.
What is 7Pay (or MEC) premium?
What is substandard rating?
When this loan type is selected, all account value will remain in the various interest crediting strategies and loaned values will continue to earn interest/index credits as if no loan had been taken from the policy.
What is PVL?
This sea animal has three hearts.
What is an octopus?
The amount earned from a growth in index after application of participation, cap, floor, trigger, and threshold rates.
What is an index credit or IIC?
This is the maximum premium amount that can be paid up front for a policy while still qualifying as life insurance for tax purposes.
What is the GSP?
The difference between the death benefit paid out on a life insurance policy and the accrued cash value paid for it by the insured which is used to calculate the cost of insurance (COI) charge.
What is the NAR?
This is the most commonly used loan type in practice.
What is PVL?
A non-guaranteed payment from the insurance company to the policy owner representing profits the company earned during the policy year.
What is a dividend?
These days of the month are sweep days for life and annuities.
What are the 7th, 14th, 21st, and 28th?