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
pre-paid life insurance, single-payment life insurance, up-front 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.
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