A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Whole Life InsurancePermanent life coverage that lasts your entire life and builds a savings component known as cash value.
- Term Life InsuranceLife coverage that lasts a set number of years and pays a benefit only if you die during that term.
- Death BenefitThe lump sum an insurer pays your beneficiaries when you die, as named in your life insurance policy.
- PremiumThe regular payment you make to keep an insurance policy active, usually billed monthly, quarterly, or yearly.
- Surrender ChargeA fee for pulling money out of a permanent life policy or annuity early, usually shrinking over time.
- Compound InterestInterest that earns interest — the engine behind long-term growth.
More in Insurance
Plain-English education — not personalized legal, tax, or investment advice.