Seven-pay accumulated premium

The 7-pay premium limit is a level annual amount of money that can be put into a cash value life insurance policy during each of the first seven policy years (or the first seven years after a material change in the policy, e.g. an increase in the face amount).

What does 7 day premium mean?

7-Pay Life Insurance is a type of Limited Pay Life Insurance (typically Whole Life Insurance) that requires payments over 7 annual installments. Seven-Pay Life Insurance can be used as an additional source of income for the family or to help cover monthly expenses in the event of your death.

How is the 7-pay test calculated?

The 7-pay test examines the cumulative amount paid under a contract during the first seven policy years. This amount is compared to the sum of the net level premiums that would have been paid on a guaranteed seven-year pay whole life policy providing the same death benefit.

What is cumulative premium?

Cumulative Premium means the total premiums paid on a Policy from the Issue Date through the Eligibility Date. Sample 1. Cumulative Premium means the Initial Premium plus any subsequent deposits received by us in the first Contract Year.

What does cumulative premium outlay mean?

Premium outlay is the sum of the periodic payments you plan to make each year. Monthly deduction charges will continue even if there is no premium outlay. Depending on the actual non-guaranteed policy performance, you may need to continue or resume premium outlays to maintain benefit levels.