Current Disbursement
Definition of "Current disbursement"
Payment of premiums and benefits as they come due. In pension plans, known as the "pay as you go basis." The plan depends on new employees coming into the work force so that their contributions can help pay for the benefits of the retiring employees. If the company is not experiencing growth and is in fact part of a matured or even a dying industry, there may not be enough on hand to pay benefits of retiring employees.
Popular Insurance Terms
Type of guaranteed investment contract in which funds for the contract are placed in the insurance company's separate account. ...
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Return of a percentage of premium paid by a business firm if its loss record is better than the amount loaded into the basic premium. ...
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Conveying of assets from the donor to the beneficiary as a means of minimizing the legal tax obligation of the estate of the donor and avoiding probate. ...
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