What Does Vanishing Premium Option Mean?

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What does Vanishing Premium Option mean? Read on to discover the definition & meaning of the term Vanishing Premium Option - to help you better understand the language used in insurance policies.

Vanishing Premium Option

Vanishing Premium Option

A vanishing premium option is a feature of participating permanent life insurance policies that allows the policyholder to apply the investment returns earned by the cash value of the policy to the premium fee. Eventually, the paid premiums earn enough money to cover future premiums, and the policyholder no longer needs to pay them out of pocket.

We hope the you have a better understanding of the meaning of Vanishing Premium Option.

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