A form of life insurance characterized by (1) death benefits of $2,000 or less, (2) a weekly or monthly premium payment schedule, (3) the collection of renewal premiums at the policyowner's home by an agent, and (4) minimum underwriting requirements. Although industrial insurance is no longer a popular insurance product, the home service distribution method that was used to sell industrial insurance is still used today to sell a variety of insurance products. Also known as debit insurance. See also home service distribution system.
Whole of life and endowment insurance with relatively low value (under £1000 sum assured). Historically, the premiums were collected by an insurance company agent at the policyholder's home. However, these may now be paid by monthly bank transfer. The legislation governing this type of insurance is less formal than for 'ordinary branch' and if an insurance company transacts both types of business it is required to keep them segregated.
A form of life insurance which today accounts for a small percentage of the business sold through the home service distribution system but a considerable percentage of the insurance in force. It is characterized by (a) death benefits of $2,000 or less, (b) a weekly, biweekly, or monthly premium payment schedule, (c) the collection of premiums at the policyowner's residence by an agent, and (d) minimum underwriting requirements. See also home service distribution system. | Back