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
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Exchange of a new policy for one already in force. ...
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Ratio of authorized control level risk-based capital of an insurance company to its total adjusted capital. This statistic determines regulatory action taken by the state's insurance ...
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