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 Flow

    The net amount of cash and cash-equivalents moving into and out ...
  2. Unconventional Cash Flow

    A series of inward and outward cash flows over time in which ...
  3. Conventional Cash Flow

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

    A type of investment plan, often sold to military personnel, ...
  5. Cash

    Legal tender or coins that can be used in exchange goods, debt, ...
  6. Co-pay

    A type of insurance policy where the insured pays a specified ...
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  1. 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 >>
  2. How do I use discounted cash flow (DCF) to value stock?

    Discounted cash flow (DCF) analysis can be a very helpful tool for analysts and investors in equity valuation. It provides ... Read Full Answer >>
  3. How often should a small business owner go through a bank reconciliation process?

    Small business owners should go through the bank reconciliation process at least monthly, and many business consultants recommend ... Read Full Answer >>
  4. Why is a company's Cash Flow from Financing (CFF) important to both investors and ...

    A company's cash flow from financing activities (CFF) is important to investors and creditors because it depicts how much ... Read Full Answer >>
  5. What is the formula for calculating free cash flow in Excel?

    Free cash flow (FCF) is used in fundamental analysis to measure the amount of cash a company generates, after accounting ... Read Full Answer >>
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    Free cash flow (FCF) is one of many possible estimates of cash flow for a business. The idea is to find out how much money ... Read Full Answer >>

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