Canadian Financial, Real Estate and Mortgage Glossary

Vanishing Premium Policy

Definition of vanishing premium policy

Related Terms and Acronyms:

• death benefit (DB)   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.
• dividend   Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
• insurance policy   A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
• life insurance   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.
• permanent life insurance   A class of life insurance policies, which include both universal and whole life insurance, with guaranteed death benefits at the end of their terms.
• premium   A payment made to an insurance company for insurance coverage.
• whole life insurance   Permanent life insurance with level premiums for the policyholder's entire lifetime.
• with-profits policy   Insurance that pays the policyholder a portion of the insurer's profits.