life insurance in force

Definition

Total amount of life insurance issued and outstanding; this sum includes dividends paid. However, amounts payable and other special provisions are not included in this calculation. For example, if the total value of life insurance policies total 1,000,000 while dividends paid out total $50,000 and accounts payable total $100,000, the life insurance in force would be $1,050,000 (calculated by 1,000,000+50,000).

Use this term in a sentence

You may want to try and get some life insurance in force so that you know others will be covered by your passing.

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When looking at life insurance policies, you need to look at the life insurance in force too see how much it is worth.

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They reviewed their life insurance in force to determine how much they would potentially have to pay out to the owners.

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