1. When a right is vested in a person, that right is said to accrue (to go) to the benefit of that person. 2. To report a transaction in the time period to which its effect relates.

Earnings on a stated sum of money that continues to increase until the money is paid out.

One factor used when calculating life insurance reserves. The formula is the accumulated cost of insurance equals the net single premium paid at the end of the term of coverage by the surviving insureds to give death benefits on the insureds who died during the term.

Accrued funds payable to policy owners but left with life insurance company to build up and earn interest.

Amount by which a qualified pension plan fails to meet the minimum funding legal standards. A plan with an accumulated funding deficiency is subject to a penalty tax and enforcement provisions. Also called funding deficiency.

Amount of money invested plus the interest earned.

Option under which a life insurance policy dividends are retained on deposit with the insurer to accrue interest. Also called accumulation option.

1. Time during which premiums are payable on a deferred annuity contract. 2. Precise time period during which the insured must incur eligible medical expenses that satisfy a required deductible. This applies to major medical or comprehensive medical plans. ************

A specified period of time, such as 90 days, during which the insured person must incur eligible medical expenses at least equal to the deductible amount in order to establish a benefit period under a major medical expense or comprehensive medical expense policy.

Ownership shares in a variable annuity’s separate account fund. An individual pays premiums for a variable annuity and these premiums are credited to the purchaser’s account (accumulation units). After the accumulation period ends, these units are used to buy annuity units. See also annuity units.

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UK: Units issued by a unit trust derived from the net income when it is automatically used to buy more units in the same fund. The unitholder benefits from not having to pay an initial charge on his reinvested income.