Savings element

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Savings element

Used in the context of life insurance, the cash value built up in a policy, which equals the amount of premium paid minus the cost of protection. This excess is invested by the insurance company, and the returns are tax-deferred inside the policy.

Savings Element

The portion of a whole life insurance policy that is set aside and invested by the insurance company. Part of the policyholder's premium each month becomes part of the savings element, as do any gains from investment. The savings element becomes available to the policyholder upon the cancellation of the policy. Furthermore, the savings element is an asset belonging to the policyholder; it can be borrowed against or used as collateral. The amount of money in the savings element is called the cash-surrender value. Any investment gains in the savings element are tax-deferred until the policy is canceled.
References in periodicals archive ?
workers enrolled in a high-deductible health plan (HDHP) with a savings component, 63% of employees are unaware of the benefits of a health savings account (HSA), and nearly one in three feel no better today about managing their health care finances than when they first became responsible to secure their own health care, a survey from consumer-directed health care solutions provider Alegeus found.
While some types of life insurance include a savings component that can provide retirement income, life insurance itself isn't necessarily an investment.
In order to meet the diverse needs of our customers, we are offering an insurance product lineup that enables customers to select insurances that suit their lifestyles, such as the industry's first fixed-term with no cash-surrender for those who want to ensure protection for a certain period of time at an affordable price, and whole life coverage with a low cash-surrender value for those who seek whole life protection with a savings component.
The second pillar, the compulsory CPP, has a forced savings component built into it with compulsory premiums of 9.
Permanent life insurance, such as whole or universal life, is much more costly because it covers you for your whole life and includes a savings component called cash value.
The MVP program is central to the savings component of that proposition.
The NCUA added that some of these payday alternatives include a savings component and access to financial literacy programs.
They combine a savings account and life insurance contract, which allow individuals to tap into the savings component known as “cash value” should the need arise.
The savings component is another aspect that may influence repayment behavior.
You pay a substantial premium, a portion of which goes into a savings component, sometimes called the cash value.
Of the $200 billion in total savings that O'Hanlon argues is plausible, land forces account for the largest single savings component at $80 billion.
Permanent life insurance policies include a savings component that can be withdrawn or borrowed against; such policies are in effect for your entire life as long as your premium payments are current.