Accumulation option, Financial Management

Assignment Help:

It is a policy feature of permanent life insurance that permits policyholders to left any dividends obtained with the insurer, where the dividends can gain interest. Accumulation options are the variety of options holders of participating life insurance policies can create with the dividends they get. Some types of insurance give dividends to their policyholders every year when the insurance company does better than expected. It is also known as an "accumulation option," "dividends on accumulation" or "accumulation at interest option".

Common options offered to participating permanent life insurance policyholders are to use their dividends to buy more insurance, or to pay a part of their existing premiums. They can also choose to receive their dividends instantly as cash, or to leave them on deposit with the insurance company to gain interest.


Related Discussions:- Accumulation option

The investment of public pension monies, Question: (a) The key determin...

Question: (a) The key determinants of investment decisions in the public sector are:- legal, political and financial factors. Show the importance of each determinant when de

Define some of government need imposed on public corporation, What are some...

What are some of the government needs imposed on a public corporation that are not imposed on a private, closely held corporation? Public corporations should submit audited finan

Future value, Future V alue The value of an investment is based...

Future V alue The value of an investment is based on the rate of interest paid at set time periods and at some point in the future. Future values incorporate both the i

What is the function of dividend policy decision, Q. What is the function o...

Q. What is the function of Dividend policy decision? Dividend policy decision: the third major decision of the financial management of the decision related to the dividend poli

Trade credit is free credit agree or disagree, Trade credit is free credit....

Trade credit is free credit.  Do you agree or disagree with this statement?  Explain. Trade credit isn't free.  It has a value.  Who bears that cost depends on the conditions o

Financial management, Financial Management: Financial management is, in...

Financial Management: Financial management is, in its most basic interpretation, the management of costs against revenue. Other management initiatives, such as marketing, are d

Pension fund management, Pension fund management Pension fund systems o...

Pension fund management Pension fund systems ought to be carefully designed and supervised to make sure that their purposes are met, the economic consequences are appropriate a

Mortgage-backed bonds, Unlike the mortgage pass-through securities, t...

Unlike the mortgage pass-through securities, the mortgage-backed bonds are debt obligations of the mortgage originator. Every issue of such bonds should be backed

Valuation, Valuation The process of finding out the current value of an...

Valuation The process of finding out the current value of an asset or company is known as valuation. There are various techniques that can be utilized to find value, few are su

Characteristics and effects of saps, CHARACTERISTICS AND EFFECTS OF SAPS ...

CHARACTERISTICS AND EFFECTS OF SAPS Although SAPs differ somewhat from country to country, they typically have the following features: Reduction in Trade Barriers SAP’s r

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd