Savings Element


Definition of "Savings element"

Cash value of life insurance that accumulates according to a table in a policy. It reflects premiums in the early years that exceed the pure cost of protection during that period. If a policy is surrendered, the policyowner receives the cash surrender value and the insurance ends. This is why a cash value policy can be considered a savings or investment vehicle. Cash value is also the part of a life insurance product used as an investment for an individual retirement account (IRA).

Have a question or comment? We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 

Search Real Estate Terms

Popular Real Estate Terms

Popular Real Estate FAQ