What does passive retention mean in insurance?

passive means the insurance company doesn’t actively work to retain policyholders, but instead, the policyholders work to keep their coverage active. In order to work to keep your policy active, you must pay your premiums. When your policy is no longer active, you will no longer be covered.

What does passive retention mean in life insurance?

When a policyholder maintains their life insurance coverage for a set period of time without taking any activity that would cause their policy to lapse, that policy is said to be in “passive” status. This period of time is typically referred to as the policy’s “retention period.” During the passive retention period, the insurance company will continue to pay out the death benefit to your beneficiaries, but they will not deduct any administrative fees or taxes.

What does passive retention mean in health insurance?

A passive retention policy is one in which the provider of the insurance company doesn't actively market the policy to you. Instead, the policy automatically renews each year and you have to take action to terminate the policy. Typically, a medical insurance policy has a passive renewal policy.

What does passive retention mean in disability insurance?

Passive retention is a term used in life insurance and disability insurance. This means that when you pay into your policy, a portion of the premium is invested and remains in the policy. When you need to access the funds, the policy’s administrator pays you the investment earnings. There may be a small administrative fee, but the payout itself is passive.

What does passive retention mean in life insurance quote?

Passive retention is a term used in life insurance that refers to the portion of your premium that your insurer holds in cash or investments. This allows them to continue to earn interest on the money while you’re paying for coverage. Unlike traditional whole life insurance, which builds cash value by investing your premium in mutual funds, you don’t have control over the investment portfolio.