Adjustable Premium

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Dictionary Says

Definition of 'Adjustable Premium'

An insurance premium that can move up or down over time based on a policy that is agreed to at the outset of an insurance contract. There are several factors that may cause your adjustable premiums to change, including the varying costs of maintaining the contracts.

Also known as a "variable premium."
Investopedia Says

Investopedia explains 'Adjustable Premium'

An adjustable premium in the insurance industry is similar in structure to an adjustable-rate mortgage, because in both cases you can expect that the amount you need to pay will change. A policy that costs the insurance company more than they expect will cause adjustable premiums to increase; on the other hand, factors such as higher-than-expected investment returns on the part of the insurance company could cause the amount of the premiums to decline.
Search results for

'Adjustable Premium'

  • How Interest Rate Cuts Affect Consumers

    http://www.investopedia.com/articles/economics/08/interest-rate-affecting-consumers.asp
    ... Consumers can expect to pay prime plus a premium depending on factors such as ... on
    what type of mortgage the consumer has, whether fixed or adjustable, and which ...

  • Intro To Insurance: Types Of Life Insurance | Investopedia

    http://www.investopedia.com/university/insurance/insurance8.asp
    ... Universal.). Universal Life Universal life insurance, also known as flexible premium
    or adjustable life, is a variation of whole life insurance. ...

  • The Impact Of An Inverted Yield Curve

    http://www.investopedia.com/articles/basics/06/invertedyieldcurve.asp
    ... (See ARMed And Dangerous, Mortgages: Fixed-Rate Versus Adjustable-Rate and ... An inverted
    curve eliminates the risk premium for long-term investments, allowing ...

  • Intro To Insurance: Conclusion | Investopedia

    http://www.investopedia.com/university/insurance/insurance11.asp
    ... Universal life insurance, also known as flexible premium or adjustable
    life, is a variation of whole life insurance. Like whole ...

  • Permanent Life Policies: Whole Vs. Universal

    http://www.investopedia.com/articles/pf/07/whole_universal.asp
    ... Universal Life Insurance This policy is also termed "adjustable life insurance ... in
    any amount (subject to certain limits) after your first premium payment has ...

  • Interest-Only Mortgages: Home Free Or Homeless?

    http://www.investopedia.com/articles/mortgages-real-estate/08/interest-only.asp
    ... Rationale for Lenders Adjustable-rate mortgages (ARMs), which have initial payments
    that are ... risk, the borrower is subject to a risk premium over conventional ...

  • Putting Collars To Work

    http://www.investopedia.com/articles/optioninvestor/08/protective-collar-bullish-collar.asp
    ... Sell to open 1 January 35 call option for $200 ( premium of $2.00 * 100 shares ... to
    manage the type of interest rate exposure present in adjustable-rate mortgages ...

  • Bond Basics: Characteristics | Investopedia

    http://www.investopedia.com/university/bonds/bonds2.asp
    ... at a price above the face value, it is said to be selling at a premium. ... Another
    possibility is an adjustable interest payment, known as a floating-rate bond. ...

  • Indexed Universal Life: Cash, Flexibility And Safety

    http://www.investopedia.com/articles/insurance/09/indexed-universal-life-insurance.asp
    ... What if you could get the flexibility of adjustable premiums and face value ... might
    use IULs as key-person insurance for business owners, premium financing plans ...

  • An Introduction To LIBOR

    http://www.investopedia.com/articles/economics/09/london-interbank-offered-rate.asp
    ... Included in those products are adjustable rate mortgages (ARMs ... If cash is scarce
    or at a premium for your local bank, the bank simply charges you, the borrower ...

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