Definition - What does Allocated Benefits mean?
Allocated benefits are payments to policyholders after the premiums have been already paid. They are meant for specific purposes, like medicine or any other health care service. Insurance companies continuously pay them until the payments reach the maximum amount.
Insuranceopedia explains Allocated Benefits
Allocated benefits are usually meant for employees and are part of the retirement package while they are employed. Their beneficiaries get to enjoy them even if they are no longer employed or the employer has already been out of business because they are already paid in full.
An example of an allocated benefit might be a medical service, such as x-rays. The one who enjoys this allocated benefit until the allocated money meant for them are used up.
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