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.
- Cash ValueThe savings portion of a permanent life policy that grows over time and can be borrowed against or withdrawn.
- AnnuityA contract with an insurance company that converts a sum of money into a stream of steady payments over time.
- Deferred AnnuityAn annuity that grows for years before payments begin, letting your money build up before you start drawing income.
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Plain-English education — not personalized legal, tax, or investment advice.