Final answer:
A "corridor gap" is a term used in the context of the Level Death Benefit Option in life insurance policies.
It refers to the situation where the cash value of the policy reaches a certain level, causing the death benefit to decrease or "corridor down" to a lower amount.
Step-by-step explanation:
A "corridor gap" is a term used in the context of the Level Death Benefit Option in life insurance policies.
It refers to the situation where the cash value of the policy reaches a certain level, causing the death benefit to decrease or "corridor down" to a lower amount.
The purpose of the corridor gap is to ensure that the policy remains classified as life insurance for tax purposes.