Dictionary of Insurance Terms: statement (insurance company to insured)
statement (insurance company to insured)
annual report to policyholders of certain cash value life insurance products and annuities to inform them of the value of the investment portion of their contracts. Buyers of whole life insurance can be said to purchase both an insurance product and a tax-deferred savings vehicle. If the insurance is terminated, the policyholder is entitled to the cash value buildup. In addition, newer forms of these policies, such as universal life insurance, variable annuities, and variable life insurance, offer policyholders a choice of investments rather than a guaranteed return. A statement informs the insured of the annual cash buildup and the performance of the investment portion.
