Policies, unrelated to human life, whereby a company regularly sets aside money so that on maturity it can retire its bonds, debentures or preferred stock. The so-called ‘sinking fund’ also enables the company to replace wasting assets such as leases (leasehold redemption policies). The policies are long-term business but not part of the life fund.
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A Policy that provides a specific sum of money after a specific interval (also known as a Sinking Fund Policy)