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Investments glossary

Vanishing Premium Policy

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Quotes of the day:

Oil prices will keep breaking new records until other countries move to nuclear and alternative energy sources or we discover massive new reserves and increase production dramatically over the next few years.

— Med Jones

A vanishing premium policy is a form of permanent life insurance in which a consumer can use the dividends from such a policy to pay the premium. Over time, the cash value of the policy increases to the point where dividends earned by the policyholder equal the premium payment. At this point, the premium is said to disappear, or vanish.

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