What Does Vanishing Premium Provision Mean?

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

Vanishing Premium Provision

Vanishing Premium Provision

A vanishing premium provision is a clause in a life insurance policy that allows the policyholder to use dividends from the policy to pay for premiums. As time goes, dividends increase in amount and eventually may be enough to pay for the premium payments, which is where "vanishing premium" comes from.

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

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