Waiver of premium


 

Home
Site Map
Add Term
Search
About Us
Contributors

Waiver of premium

An arrangement in life insurance, which, in return for some increase in premium, ensures that policyholders have their premiums paid during periods of absence from work due to illness or accident. There is usually an elimination period (or waiting period), UK deferment period, typically several months, after which the insurers commence payments.

Waiver of premium

A provision in an insurance policy that allows payment of insurance premiums to be permanently or temporarily stopped in the event the policyholder becomes incapacitated.



Waiver of premium

Similar Matches

High premium convertible debenture

High premium convertible debenture

A bond with a long-term, high-premium, common stock conversion feature. It also offers a competitive interest rate. This type of investment vehicle is aimed at bond investors who want to be able to convert into stock to hedge against inflation.


Forward premium

Forward premium

A currency trades at a forward premium when its forward price is higher than its spot price.


Single Premium Deferred Annuity (SPDA)

Single Premium Deferred Annuity (SPDA)

An IRA-like annuity into which an investor makes a lump-sum payment that is invested in either a fixed-return instrument or a variable-return portfolio, which is taxed only when distributions are taken.


Percentage premium

Percentage premium

Applies mainly to convertible securities. Premium over parity of a convertible bond divided by parity.


Equity risk premium

Equity risk premium

The concept that justifies investment in stocks, where your capital is at risk, rather than gilt-edged bonds which are as safe an investment as you can get and where your capital is not at risk provided you hold the bond til maturity.The theory goes that it is only worth investing in stocks if the return you get exceeds the return you could get on gilts - otherwise, why would you take on the extra risk? The difference in returns is known as the equity risk premium.Every historical analysis of returns achieved by stocks compared to bonds shows that stocks outperform bonds in the long term. This is why you repeatedly hear pundits say that the stock market, while risky in the short term, is not risky in the long term. The key thing, as a private investor, is to leave your money in the market for long enough for the long term benefit to eradicate the short term risk. Stick your money in the market for two months, and it might go down 20% if you are unlucky. Stick it in a well-diversified portfolio for 30 years, and it should produce returns that comfortably exceed what you could have got from bonds.


Further Suggestions

insurance premium
Fixed premium
insurance premium tax
life assurance premium relief
Unamortized premiums on investments
Risk premium
Conversion premium
Bond premium
premium
Tender offer premium
Call premium
Risk premium
Single premium life insurance
Premium income
warrant premium
Indemnity Guarantee Premium
Premium
option premium
Term premiums
Premium bond
Liquidity premium
Default premium
premium bonds
Option premium
Forward premium


 
All rights Reserved. Do not copy without permission. T4 Innovations Ltd