Florida Health Insurance Definitions

Florida Health Insurance Terms:
"Incidents of Ownership"

Explain -- Incidents of Ownership?":

Various rights that may be exercised under the policy contract by the policy owner. Some of the incidents of ownership may include rights: (1) to cash-in the policy, (2) to receive a loan on the cash value of the policy, and (3) to change the beneficiary designation.

Example of Incidents of ownership explained: Some day you decide to take some money out of your insurance policy for a home improvement or vacation, you contact your agent and recieve a loan on the cash value of your insurance policy.

Another example of incidents of ownership might be when you have a new baby and want to change, or add to the "beneficiary designation" of your policy. Since you own the policy you have the right to change it as you go along.

It can also mean: Any control over property. If you give away property but keep an incident of ownership--for example, you give away an apartment building but retain the right to receive rent--then legally, no gift has been made. This distinction can be important if you're making large gifts to reduce your eventual estate tax. More info on Ownership: Incidents of Ownership


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