Insurance   A layperson's glossary of insurance terminology.

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OPTION A PLAN
A plan used in universal life insurance in which the potential policy proceeds remain level. In an option A plan, the policy proceeds are equal to the policy's death benefit. Consequently, the net amount at risk is equal to the difference between the policy's death benefit and the policy's cash value. As the cash value increases, the net amount at risk decreases. See option B plan.
ALSO SEE: OPTION B PLAN

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