Cash value refers to the amount of money a policyholder is entitled to receive upon the cancellation of a life insurance policy or the amount available for loans and withdrawals before the policy matures or is cashed out.
Interest sensitive policies are a newer generation of life insurance policies that are credited with interest currently being earned by insurance companies on these policies, ensuring that policyholders can potentially benefit from favorable economic conditions.
A mutual company is a company owned by its members or depositors. Common examples include mutual insurance companies and building societies. These companies distribute profits to policyholders rather than shareholders.
A mutual insurance company is a type of insurance company that is owned by its policyholders. Unlike stock insurance companies, mutual insurance companies do not have stock that is available for purchase on the stock exchange.
A Stock Insurance Company is a type of insurance company that is owned by stockholders. These stockholders receive earnings in the form of shareholder dividends. However, under state laws, the interests of policyholders take precedence over those of stockholders.
