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Investments glossary

Vanishing Premium Policy

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Quotes of the day:

Reality is the crutch for people who can\'t cope with drugs.

— Lily Tomlin

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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