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Vanishing Premium Policy

Vanishing Premium Policy

What is 'Vanishing Premium Policy'

A vanishing premium policy is a form of participating whole life insurance where the policyholder can use the dividends from the policy to pay the premium. Over time, the dividends will increase to the point that they cover the entire cost of the premiums.

Explaining 'Vanishing Premium Policy'

When properly constructed, vanishing premium policies can be very attractive to consumers who are worried about longer term fluctuations in income, such as the self-employed, people who wish to start a business or people who wish to retire early.


Further Reading

The law and economics of vanishing premium insuranceThe law and economics of vanishing premium insurance
heinonline.org [PDF]
… The point in time when the premium is said to have "vanished" as reflected … were induced to purchase by false assurances that premium payments would "vanish" after the … cash values of other policies to finance premium payments for new vanishing premium policies based on …

Market distress and vanishing liquidity: anatomy and policy optionsMarket distress and vanishing liquidity: anatomy and policy options
papers.ssrn.com [PDF]
… The point in time when the premium is said to have "vanished" as reflected … were induced to purchase by false assurances that premium payments would "vanish" after the … cash values of other policies to finance premium payments for new vanishing premium policies based on …

Appearing and disappearing dividends: The link to catering incentivesAppearing and disappearing dividends: The link to catering incentives
www.sciencedirect.com [PDF]
… The point in time when the premium is said to have "vanished" as reflected … were induced to purchase by false assurances that premium payments would "vanish" after the … cash values of other policies to finance premium payments for new vanishing premium policies based on …

The economic consequences of disappearing government debtThe economic consequences of disappearing government debt
www.jstor.org [PDF]
… The point in time when the premium is said to have "vanished" as reflected … were induced to purchase by false assurances that premium payments would "vanish" after the … cash values of other policies to finance premium payments for new vanishing premium policies based on …

The external finance premium and the macroeconomy: US post-WWII evidenceThe external finance premium and the macroeconomy: US post-WWII evidence
www.sciencedirect.com [PDF]
… The point in time when the premium is said to have "vanished" as reflected … were induced to purchase by false assurances that premium payments would "vanish" after the … cash values of other policies to finance premium payments for new vanishing premium policies based on …

Disappearing dividends, catering, and riskDisappearing dividends, catering, and risk
academic.oup.com [PDF]
… The point in time when the premium is said to have "vanished" as reflected … were induced to purchase by false assurances that premium payments would "vanish" after the … cash values of other policies to finance premium payments for new vanishing premium policies based on …

The disappearing day-of-the-week effect in the world's largest equity marketsThe disappearing day-of-the-week effect in the world's largest equity markets
www.tandfonline.com [PDF]
… The point in time when the premium is said to have "vanished" as reflected … were induced to purchase by false assurances that premium payments would "vanish" after the … cash values of other policies to finance premium payments for new vanishing premium policies based on …

Verifiability and the vanishing intermediate exchange rate regimeVerifiability and the vanishing intermediate exchange rate regime
www.nber.org [PDF]
… The point in time when the premium is said to have "vanished" as reflected … were induced to purchase by false assurances that premium payments would "vanish" after the … cash values of other policies to finance premium payments for new vanishing premium policies based on …

Disappearing anomalies: a dynamic analysis of the persistence of anomaliesDisappearing anomalies: a dynamic analysis of the persistence of anomalies
www.tandfonline.com [PDF]
… The point in time when the premium is said to have "vanished" as reflected … were induced to purchase by false assurances that premium payments would "vanish" after the … cash values of other policies to finance premium payments for new vanishing premium policies based on …


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