Co-Founder, Coastal Financial Partners Group, California
Vesting does not relate to life insurance, at least, not in the common uses of the term with respect to pension plans. A policy owner owns any cash values and all policy rights.
You might be referring to a surrender charge schedule which exists in many permanent policies, especially Universal Life and related types and is subtracted from the cash accumulation value in the event the policy is canceled early. A surrender charge usually applies in the first several years of the policy e.g. 3-20 years, depending on the policy. Most schedules grade down during this time.
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You might be referring to a surrender charge schedule which exists in many permanent policies, especially Universal Life and related types and is subtracted from the cash accumulation value in the event the policy is canceled early. A surrender charge usually applies in the first several years of the policy e.g. 3-20 years, depending on the policy. Most schedules grade down during this time.