The right of a named beneficiary of a pension plan or life insurance policy to have a stream of payments converted into a single lump sum distribution based on the present value of future benefits.
Related information about commutation right:
- commutation right - Business Definition
commutation right definition: The right of the beneficiary of a life insurance policy to receive a lump-sum settlement in place of the remaining payments of an ...
- What is commutation right? definition and meaning
Definition of commutation right: The beneficiary's right to exchange a series of payments for a lump sum.
- Commuted Value: Definition from Answers.com
Privilege of a beneficiary to take unpaid income payments under a settlement option of an annuity or life insurance policy in the form of a lump sum.
- Commutation right - Swiss Life
Swiss Life Ltd, General-Guisan-Quai 40, P.O. Box, 8022 Zurich. 1 / 2. Commutation right. Signatures. Insured person. Place and date. Signature. Please see the ...
- What is commutation clause? definition and meaning
commutation clause. commutation · commutation right. Definition. An arrangement that permits a reinsurer to make a onetime payout that fulfills any and all ...
- What is lump sum distribution? definition and meaning
Related Terms. nonperiodic distribution · lump sum · commutation right · balloon payment. Browse by Letter: #ABCDEFGHIJKLMNOPQRSTUVWXYZ ...
- Letter to the Editor
The requirement that all payments under the contract be periodic payments operates to prevent a contract with a commutation right or surrender right from ...
- TWELVE UNCOMMON THINGS YOU CAN DO WITH A GIFT ANNUITY
Some practitioners have the annuitant (or guardian) exercise the commutation right immediately after the annuity is funded, but this could appear as merely a ...