Savings element

Definition:

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.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Regulation U

Federal Reserve Board limit on how much credit a bank can allow a customer for the purchase and carrying of margin securities.

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