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

Calculate the thai bhat and risk systematic, 1) Is foreign exchange risk sy...

1) Is foreign exchange risk systematic? What are the implications of your answer regarding corporate hedging policy with respect to foreign exchange risk? In your answers make sure

Municipal bonds, 1. Tax-backed debt and 2. Revenue bonds ...

1. Tax-backed debt and 2. Revenue bonds are two types of municipal bonds.

Describe societys interests can influence financial managers, Describe how ...

Describe how society's interests can influence financial managers. Sometimes the interests of a business firm's owners aren't the same as the interests of society.  For illustr

Higher production costs, Previous MOS = 750 - 270 = 480 aircraft; Revised M...

Previous MOS = 750 - 270 = 480 aircraft; Revised MOS = 750 - 420 = 330 aircraft Explanation that a lower MOS = lower levels of profit and therefore exposes the business to more

Analysis of financial plans, Part 1: Contingency plan Create contingency pl...

Part 1: Contingency plan Create contingency plans for the following scenarios: > One of your highly qualified consultants has given three months notice and is planning to move to a

Directional strategies--investment strategy of hedge funds, Directional Str...

Directional Strategies : Strategies in this category involve buying or/and selling securities or financial instruments that the markets believe to be significantly overpriced or un

Mortgage pass-through securities, The basic form of a mortgage back...

The basic form of a mortgage backed security is that of a mortgage pass-through security. Among the mortgage-related securities, the mortgage pass-through s

Illustrate working capital cycle in a manufacturing business, Working capit...

Working capital cycle in a manufacturing business Average time raw materials are in stock (raw materials/purchases x 365 days)   Plus   Time

Basic objectives of cash management, Q. Basic objectives of cash management...

Q. Basic objectives of cash management? The basic objectives of cash management are two-fold: 1) To meet the cash disbursement needs (payment schedule); and 2) To minimize f

Primary market, Primary Market In an economy, at a given point of time, ...

Primary Market In an economy, at a given point of time, there will be people/entities called savers the surplus units, whose current income exceeds their current expenditure whi

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