Installment Policies
Any of the usual plans of insurance may assume the form of a so-called
installment policy, the installment feature merely providing that the proceeds
of the policy at death or on maturity as an endowment shall be paid in a
series of installments, annually, semi-annually, quarterly or monthly, instead
of in one lump sum. To illustrate, a whole-life policy may stipulate that
in the event of the insured^ death its face value of $10,000 shall be payable
in ten annual installments of $1,000 each, or the arrangement may be for
fifteen payments of $666.67, twenty payments of $500, twenty-five payments
of $400, etc. Or there may be a further stipulation to the effect that after
the company has paid $1,000 at the beginning of each year for ten years
if the beneficiary be still alive, the same annual payments shall be continued
for that amount throughout the beneficiary's lifetime. Numerous special
arrangements, however, can be made to suit almost any set of conditions
which the insured may have in mind when considering the purchase of such
a policy.
Sections in Chapter 9.
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