Definition of "Cash withdrawals"

Sharon G. White real estate agent

Written by

Sharon G. Whiteelite badge icon

HomeSmart Corporate - Houston

Removal of money from an individual life insurance policy or an employee benefit plan. A cash withdrawal from a life insurance policy reduces the death benefit by the amount of the withdrawal plus interest thereon. When a cash withdrawal is made from an employee benefit such as a pension plan, the employee usually forfeits all benefits purchased on the employee's behalf by the employer.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

U.S. government agency (formerly the Atomic Energy Commission) responsible for regulating the nuclear energy industry. The commission also provides supplemental insurance for nuclear ...

Means of selling and servicing property and casualty insurance through agents who represent different companies. The agents own the records of the policies they sell. ...

Person covered under an employee benefit insurance plan. ...

Premiums paid with funds that are not borrowed from life insurance. It is important to ascertain the finance charges and the costs/benefits of such a transaction. ...

Statement submitted to the insurance company to accompany a request for the reinstatement of an insurance policy that has lapsed. This statement certifies that the insured's health has not ...

Person by whose life the duration of an insurance policy, estate trust, or gift is measured. This person is generally referred as the insured in an insurance policy. ...

Liability incurred by a parent by reason of a tort committed by his or her minor child. ...

same as term Lost Policy Receipt: life insurance company form to be signed by a policyholder who wishes to surrender a policy that has been lost. The signed receipt then becomes evidence ...

Automatic nonproportional reinsurance treaty or automatic proportional reinsurance treaty that provides coverage for losses upon which claims are made while the treaty is in force, without ...

Popular Insurance Questions