What does retention mean in life insurance?

What is the difference between term and permanent life insurance

What does retention period mean in variable life insurance?

The term " retention refers to the length of time you must hold a policy before the death benefit begins to accrue. You can generally choose how long you want to retain your life insurance coverage, though the policyholder usually wants to keep their coverage as long as possible to maximize the amount of cash returned.

What is retention period in universal life insurance?

If you decide to purchase a whole life insurance policy, then this is your cash value. When you pay into a whole life policy, a portion goes into a savings vehicle. The balance goes into a policy that gives you the ability to receive a death benefit.

What is retention period in term life insurance?

The term life insurance policy has a fixed term. If you pass away during the coverage period, your beneficiaries receive the death benefit. However, if you outlive the coverage, your beneficiaries will no longer receive a death benefit. There are two types of term life insurance: guaranteed issue and mortality.

What is retention period in life insurance?

The term “retention” refers to the length of time that you have to pay premiums to keep your policy in force. Generally, the longer your policy is in effect, the lower your premium will be. If you let your policy lapse, you will need to pay a reinstatement fee and possibly increased rates to keep the policy active.