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What is the free look provision in a Deferred annuity?
The free look provision in a deferred annuity allows the policyholder a specified period, usually ranging from 10 to 30 days, to review the contract after purchase. During this time, the policyholder can cancel the annuity without penalty and receive a full refund of any premiums paid. This provision ensures that the buyer has the opportunity to assess the terms and conditions of the annuity before fully committing. It provides a safeguard against buyer's remorse and promotes transparency in the financial product.
When bond retired before their maturity?
Bonds can be retired before their maturity through a process known as early redemption or call. This typically occurs when the issuer decides to repay the bondholder before the scheduled maturity date, often due to favorable interest rate conditions. Call provisions, which are specified in the bond's terms, outline the conditions under which this can happen. Investors may receive their principal back along with any accrued interest, but they may miss out on future interest payments.
Why is a call provision advantegeous to bond issuer?
A call provision is advantageous to a bond issuer because it allows them to redeem the bonds before maturity, typically when interest rates decline. This enables the issuer to refinance the debt at a lower interest rate, reducing their overall borrowing costs. Additionally, having the flexibility to call bonds can help the issuer manage their debt more effectively in response to changing financial conditions. Overall, it provides financial flexibility and potential cost savings for the issuer.
I want to withdraw the recurring deposit money before maturity?
It is difficult to withdraw a recurring deposit before its maturity. Banks will typically make a person wait one year before withdrawal.
When a CD is cashed before its maturity date the deposit must pay a?
Penalty.
What is a puttable provision?
A puttable provision is a feature in a bond or financial instrument that allows the holder to sell the security back to the issuer at specified times before maturity, typically at face value. This provision provides investors with a degree of protection against rising interest rates or deteriorating credit quality, as they can "put" the bond back to the issuer instead of holding it to maturity. It enhances the bond's attractiveness, often resulting in a lower yield compared to similar securities without such a feature.
What is a provision on a bond which provides for the systematic retirement of the bond prior to their maturity?
A provision on a bond that provides for the systematic retirement of the bond prior to maturity is known as a sinking fund provision. This provision requires the issuer to set aside funds on a regular basis to repay a portion of the bond issue before it matures, reducing the overall debt burden.
What are the terms and conditions of the training repayment agreement provision?
The terms and conditions of the training repayment agreement provision outline the agreement between the trainee and the organization regarding the repayment of training costs if the trainee leaves the organization before a specified period.
What provision allows an insurer to deny a claim that occurs prior to the policy period?
The "prior acts exclusion" provision allows an insurer to deny a claim that occurred before the policy period stated in the insurance contract, as it does not provide coverage for incidents that took place before the policy's effective date.
Call provision or sinking fund make bond more or less risky?
A call provision can make a bond more risky for the investor because it gives the issuer the option to redeem the bond at a predetermined price before maturity, potentially preventing the investor from earning interest for the full term. On the other hand, a sinking fund provision can make a bond less risky for investors as it requires the issuer to set aside money regularly to retire a portion of the bond issue before maturity, reducing the overall outstanding debt and default risk.
What is the free look provision in a Deferred annuity?
The free look provision in a deferred annuity allows the policyholder a specified period, usually ranging from 10 to 30 days, to review the contract after purchase. During this time, the policyholder can cancel the annuity without penalty and receive a full refund of any premiums paid. This provision ensures that the buyer has the opportunity to assess the terms and conditions of the annuity before fully committing. It provides a safeguard against buyer's remorse and promotes transparency in the financial product.
What is time to maturity?
Time to maturity is the amount of time left before an investment instrument can be exchanged for cash. If the instrument is withdrawn before maturity, there is will fines.
When bond retired before their maturity?
Bonds can be retired before their maturity through a process known as early redemption or call. This typically occurs when the issuer decides to repay the bondholder before the scheduled maturity date, often due to favorable interest rate conditions. Call provisions, which are specified in the bond's terms, outline the conditions under which this can happen. Investors may receive their principal back along with any accrued interest, but they may miss out on future interest payments.
Why is a call provision advantegeous to bond issuer?
A call provision is advantageous to a bond issuer because it allows them to redeem the bonds before maturity, typically when interest rates decline. This enables the issuer to refinance the debt at a lower interest rate, reducing their overall borrowing costs. Additionally, having the flexibility to call bonds can help the issuer manage their debt more effectively in response to changing financial conditions. Overall, it provides financial flexibility and potential cost savings for the issuer.
What is physiological maturity?
physiological maturity in pant is: - maturity of the plants before ripening, when it is green. for instance chillies can be consumed before ripening. or consuming vegetables, fruits and cereal crops when they are greeen.
Is a tuberculosis skin test given before extradition?
When held in custody, a medical test for communicable diseases can be administred to you at any time. If you are suspected of carrying TB or having been exposed to it, it might well be specified before or after you are extradited, but there is no statutory provision that specifies it that I'm aware of.
What is a male cow castrated before reaching sexual maturity called?
"Male cows" castrated before reaching sexual maturity are called steers.
