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Indeterminate premium life insurance

A type of nonparticipating whole life insurance that specifies both a maximum potential premium rate and a lower premium rate. The lower rate is paid by the policyowner for a specified period (from 1 to 10 years) immediately after the policy is purchased. Later, the premium rate may fluctuate according to the investment earnings of the insurance company, but the premium rate will never be larger than the maximum premium rate.

 

 


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