Cash Value Plans Clause Samples
A Cash Value Plans clause defines the terms under which a life insurance policy accumulates a cash value component in addition to providing a death benefit. This clause typically outlines how premiums paid by the policyholder are allocated, with a portion going toward the insurance coverage and another portion building up as cash value that can be borrowed against or withdrawn under certain conditions. The core practical function of this clause is to provide policyholders with a savings or investment element within their life insurance policy, offering financial flexibility and potential access to funds during the life of the policy.
Cash Value Plans. The reinsurance benefit at each policy duration shall equal the difference between the face amount of death benefit reinsured and the terminal reserve for the amount reinsured based on the 1958 CSO Mortality Table using a 3% interest rate, curtate functions and the Commissioners Reserve Valuation Method. Cologne may interpolate or use reasonable approximations for the plan of insurance, etc.
Cash Value Plans. The net amount at risk of the policy is defined to be the death minus the terminal reserve. The amount of reinsurance benefit at each policy is the death benefit of the policy minus the initial amount retained minus the terminal reserve on the [(portion of the policy reinsured) or (policy)]. The Company shall notify the Reinsurer of the Reserve Calculation Method being used. The reinsurer may interpolate or use reasonable approximations.
Cash Value Plans. Terminal reserves will be on the ceding company’s basis.