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In property and casualty insurance, refers to the total combined risks that could be involved in a single loss event (involving one or more insured perils). Source: http://www.irmi.com/online/insurance-glossary/terms/a/accumulation.aspx
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∙ 15y ago
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When you purchase insurance what are you doing?
Protection (term insurance), Accumulation (cash value insurance) and Distribution. You are making sure you protect your investments, family etc... You are making sure you have money to retire in the future with a cash building life insurance such as custom whole life, or whole life.
Does the insurance company charge you fees for surrendering a term life insurance policy?
No. Surrender charges only apply when surrendering a life insurance policy which includes cash value accumulation, and even then only during the surrender charge period. Term life insurance policies have no cash value and can be canceled at any time by simply not paying additional premiums.
What is cash accumulation value?
It is the value or total of cash accumulating in the cash value account
Is a cash-value policy the same as a permanent insurance policy?
Yes, the types of permanent insurance policies - whole life and universal life - are designed to build cash value. There are permanent life insurance policies that offer guarantees over cash value accumulation, therefore staying in force until age 105, 115, 121, etc - and build very little cash value. The cost for this type of permanent insurance is often much lower than those that will build significant cash value.
What is the definition of the term 'whole life insurance'?
A whole life insurance provides coverage for an individual's whole life. A savings components which builds overtime and can be used for wealth accumulation. Whole life is the most basic form of cash value insurance.
What products do AAA life insurance offer?
"AAA Life Insurance publicly advertises a number of products. They offer term life insurance, which provides coverage for a set period, whole life insurance, either with higher coverage or guaranteed approval, or universal life insurance, a flexible plan organized around custom death benefits and an accumulation of its cash value.
What type of insurance policies would perform the function of cash accumulation?
Whole life
What is accumulation factor?
Given I<T, the accumulation factor A(I,T) is the accumulation value at the time T of one unit of money invested at time I. So for compound interest A(I,T)= (1+i)^(T-I).
How do you take out a loan on your policy?
A policy loan is available only against a whole life policy, not a term life policy. Whole life accumulates cash value and a term life policy does not. The insurance policy will specify the interest rate that will accrue on the loan. The loan does not have to be repaid, but interest will continue to accrue if it does not. The insurance company will permit only a specified percentage of the cash value to be borrowed, and there must be a sufficient accumulation of cash value to a policy loan to be made. You should contact the insurance company directly to make arrangements for the loan.
Does a child need life insurance?
There are quite a few benefits of having life insurance on a child. Beyond the obvious (life insurance benefit) there are other reasons why parents get life insurance policies for their children: cash accumulation for college funds for example.
What are accumulators in insurance?
This would refer to wealth accumulation, i.e. investments. Perhaps someone else can give you more specifics.
What kind of value provides replacement value for personal possessions?
Renter's insurance Renter's insurance
