Definition Of Cash Accumulation Method In Insurance

Definition of "Cash accumulation method"

Beverly Jackson, Real Estate Agent Keller Williams Realty Gulf Coast

Procedure used to compare the costs of life insurance policies by having equal death benefits of the policies held constant and accumulating the differences in the premiums paid among the policies at a given interest rate over a stipulated period of time. At the end of that time period, that policy with the largest accumulated value in the difference of the premiums paid is the best cost effective policy.