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 ?
CBB offers the Unlad Express microfinance product through which clients can avail themselves of P5,000 to P300,000 loans, with microinsurance family coverage and savings components.
This concept is similar to what a 2012 Wharton study showed: Of the four factors analyzed, investment allocation was less important than the three savings components (when you start, how much you contribute, and when you retire).
The growth was primarily led by strong demand for products with protection and savings components such as pension and endowment
Appropriate disclosure of cash-value policies has always required information regarding its insurance and savings components, and that has always meant information regarding a policy's annual costs and its compounding rates.
Table 3 shows the breakdown of energy savings components for the same day as Figure 3 (January 12th, 2010).
He says there are a few savings components to the portal--once is the efficiency component of staff taking the patient calls and registrations.
But they may be cut by percentages to be prescribed later, with benefits for financial products with high savings components likely to suffer the deeper cuts, analysts say.
The basic operation of life insurance as a capital accumulation vehicle with both death protection and savings components can be illustrated with the following simplified example.
This paper presents some empirical evidence on the relationship between Spanish savings components at a regional level.
It provides more flexibility than whole life by allowing the holder to shift money between the insurance and savings components of the policy.
The program's recently completed improvements extend the value of energy savings components that were initiated more than a decade ago.