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).
Popular Insurance Terms
Trade association of commercial insurance brokers whose objective is to further the interests of these brokers through education, lobbying, and adherence to professional ethics. ...
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Important 1944 U.S. Supreme Court ruling that the insurance business constituted interstate commerce and was thus subject to the SHERMAN antitrust act. This decision came in U.S. v. ...
Insurance policy under which the value equals the benefits to be paid to the plan participants (employees) at normal retirement age, assuming that (1) their rate of earnings remains the ...
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