What does Direct Recognition mean? Read on to discover the definition & meaning of the term Direct Recognition - to help you better understand the language used in insurance policies.
Direct recognition is a strategy that insurance companies employ to deal with the loaned cash values of life insurance policies. Unlike non-direct recognition, earning rates can be either negatively or positively affected when the cash value is used collateral for a loan under a direct recognition scheme.
We hope the you have a better understanding of the meaning of Direct Recognition.