Savings element

(redirected from Savings Elements)

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 ?
Clients can actively choose and adjust face amounts or change the protection and savings elements.
Other energy savings elements include windows that bring in natural light (daylight) and sensor-controlled interior lighting.
Daiichi Mutual had been cashing in on sales of policies with large savings elements.
Universal life insurance "unbundles" the protection and savings elements of traditional whole life insurance products.
The CMAS (California Multiple Award Schedule), which is managed by the Department of General Services, provides local California State agencies access to the security, cost savings elements, and simplicity of MaxTerm thin clients.
Objectives : The project has a strong emphasis on energy efficiency and energy savings elements.
With ManuFlex Protector, they can adjust the protection and savings elements of the plan to tailor to their individual needs in one policy.