Accumulation Option

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Dictionary Says

Definition of 'Accumulation Option '

A policy feature of permanent life insurance that allows policyholders to leave any dividends received with the insurer, where the dividends can earn interest. Accumulation options are the variety of options holders of participating life insurance policies can make with the dividends they receive. Some types of insurance pay dividends to their policyholders each year when the insurance company performs better than estimated. 

Also called an "accumulation option," "accumulation at interest option" or "dividends on accumulation".
Investopedia Says

Investopedia explains 'Accumulation Option '

Common options available to participating permanent life insurance policyholders are to use their dividends to purchase more insurance, or to pay a portion of their existing premiums. They can also elect to receive their dividends immediately as cash, or to leave them on deposit with the insurance company to earn interest.

Search results for

'Accumulation Option '

  • Series 7 Study Guide - Determining Customer Objectives ...

    http://www.investopedia.com/exam-guide/series-7/customer-objectives/risk-tolerance.asp
    ... 8.10 Option Styles; 8.11 Spread Option Strategies; 8.12 Straddle Option Strategies; ...
    Accumulation Phase An investor in her 20s or early 30s is in what is known as ...

  • Series 7 Study Guide - Portfolio Management - Mutual Fund Analysis ...

    http://www.investopedia.com/exam-guide/series-7/portfolio-management/mutual-fund-analysis.asp
    ... Right of accumulation (ROA). : This gives an investor a discount on current mutual
    fund purchases by combining both current and previous fund transactions to ...

  • Introduction To Annuities: Basics of Annuities | Investopedia

    http://www.investopedia.com/university/annuities/annuities1.asp
    ... Annuitants seldom choose any kind of straight payment option that has no ... 1. Immediate
    Annuities – These contracts do not have an accumulation phase before ...

  • Selecting The Payout On Your Annuity

    http://www.investopedia.com/articles/retirement/05/071105.asp
    ... During the accumulation phase, you can add funds to your annuity contract by ... Life
    Option The life option typically provides the highest payout because the ...

  • Series 7 Study Guide - Portfolio Management - Technical Analysis ...

    http://www.investopedia.com/exam-guide/series-7/portfolio-management/technical-analysis.asp
    ... amply rewarded later on. Accumulation/Distribution Line Stock price is
    just one component of technical analysis. Volume is also ...

  • Series 7 Study Guide - Packaged Securities - Purchasing Variable ...

    http://www.investopedia.com/exam-guide/series-7/packaged-securities/purchase-variable-annuities.asp
    ... Accumulation Phase During the accumulation phase, your client makes purchase payments ...
    The money allocated to each investment option will increase or decrease ...

  • Series 7 Study Guide - Determining Customer Objectives - Financial ...

    http://www.investopedia.com/exam-guide/series-7/customer-objectives/financial-considerations.asp
    ... 8.10 Option Styles; 8.11 Spread Option Strategies; 8.12 Straddle Option Strategies; ...
    Accumulation; Consolidation; Spending; Gifting. Next: Determining A Client's ...

  • 5 Retirement Plan Moves To Make Before Year-End

    http://www.investopedia.com/articles/retirement/06/yearendtips.asp
    ... RMD Pitfalls for more information, including how to handle excess accumulation
    penalties ... 2011 is the year you reached age 70.5, you have the option of deferring ...

  • Series 26 Study Guide - Variable Contracts - Types and Valuation ...

    http://www.investopedia.com/exam-guide/series-26/variable-contracts/types-variable-annuities.asp
    ... The rate of exchange from accumulation units to annuity units is determined by an ...
    several factors, including the annuitant's age, sex, payout option chosen and ...

  • Live Longer, Retire Younger: Can You Do It?

    http://www.investopedia.com/articles/retirement/07/insureretirement.asp
    ... protection option, it doesn't begin until your payout starts. Consequently, if the
    cost of living increases significantly during the accumulation phase ...

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