Method of comparing the cost of life insurance policies with the same death benefit. The differences between the premiums paid to each policy are kept and accumulate interest at a given rate. At the end of a predetermined time frame, the largest amount accumulated from the difference of premiums paid is considered the most cost effective.
Insurance Encyclopedia
Cash accumulation policy
Pensions term, referring to an insurance policy under which contributions net of expenses are accumulated in a pool to which bonuses and interest are added. The proceeds are used to buy pension benefits as they become due.
Cash basis
Costs of the service when payment was made rather than when the service was performed.
Cash call
A request for funds made by a managing agent to members of a syndicate.
Cash call/loss clause
A proportional reinsurance clause that permits a cedant, on settling a loss above a given sum, to obtain immediate settlement to avoid waiting for the periodic payment. The clause cannot be implemented if the cedant owes outstanding balances to the reinsurer.
Cash claim
Cash paid, draft redeemed or drawn, for settlement of a group insurance claim.
Cash Crop Plantation Insurance
Plantations usually financed by banks and supervised by an approved agency may be covered. The Policy covers Fire and forest Fire, riot, strike, malicious damage, storm, tempest, flood, cyclone, hurricane and allied perils, impact damage. The cover can also be extended to cover diseases, insects and pests to the limited extent only not exceeding 5%.
Cash deductible
See: deductible.
Cash equivalent transfer value (CETV)
The cash equivalent of accrued benefits under a defined benefit scheme that may be used as a transfer payment to another approved pension arrangement or to purchase a section 32 policy. The minimum funding requirement applies to CETV.
Cash flow
In a medical practice, the amount of actual cash generated and available for use by the medical practice within a given period of time.