Terminology and Definitions:
Paid Up Additions Rider – Paid-up additional insurance is available as a rider on a cash value whole life policy. It lets policyholders increase their death benefit and living benefit by increasing the policy’s cash value. Paid-up additions themselves then earn dividends, and the value continues to compound indefinitely over time.
Non-Direct Recognition – the simple definition is policies are not affected by their outstanding loans with respect to dividends. A non-direct recognition life insurance company treats the cash value as if there is no loan outstanding.
Human Life Value – Human Life Value (HLV) is the present value of all future income that you could expect to earn for your family. It is defined as the total income an individual is expected to earn until retirement. It indicates the economic loss a family would suffer in case of early demise of the earning member.