Cash Flow Plans


DEFINITION of 'Cash Flow Plans'

A method that an insured can use to control the premium payments that they must make on their policies. Cash flow plans allow the insured to coordinate the flow of premiums with his or her own cash flow. This allows the insured to keep his or her funds for as long as possible and thus earn a greater amount of interest on them.

BREAKING DOWN 'Cash Flow Plans'

Cash flow plans can apply to all forms of payments and not just insurance. Any consumer can benefit from keeping cash reserves on hand to earn interest instead of paying them out as soon as possible. The larger the amount of the payment, the more critical this issue becomes, as a proportionately larger amount of potential interest is at stake.

  1. Cash

    Legal tender or coins that can be used to exchange goods, debt ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out ...
  3. Conventional Cash Flow

    A series of inward and outward cash flows over time in which ...
  4. Unconventional Cash Flow

    A series of inward and outward cash flows over time in which ...
  5. Periodic Payment Plan

    A type of investment plan, often sold to military personnel, ...
  6. Co-pay

    A type of insurance policy where the insured pays a specified ...
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  1. Do you discount working capital in net present value (NPV)?

    Net present value (NPV) calculations should include the discounted value of changes in working capital. This treatment of ... Read Full Answer >>
  2. How is working capital different from fixed capital?

    There are several key differences between working capital and fixed capital. Most importantly, these two forms of capital ... Read Full Answer >>
  3. What is the expense ratio in the insurance industry?

    The expense ratio in the insurance industry is a measure of profitability calculated by dividing the expenses associated ... Read Full Answer >>
  4. Do you include working capital in net present value (NPV)?

    Working capital is included in calculating the net present value (NPV) of a company. NPV is the difference between the present ... Read Full Answer >>
  5. How can companies use the cash flow statement to mislead investors?

    Cash flow is a means for most investors to examine the actual economics of a business they might invest in, especially from ... Read Full Answer >>
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    Discounted cash flow (DCF) analysis can be a very helpful tool for analysts and investors in equity valuation. It provides ... Read Full Answer >>

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