Cash Flow Plans

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Unconventional Cash Flow

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

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

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

    Legal tender or coins that can be used in exchange goods, debt, ...
  5. Cash Flow

    1. A revenue or expense stream that changes a cash account over ...
  6. Co-pay

    A type of insurance policy where the insured pays a specified ...
Related Articles
  1. Zooming In On Net Operating Income
    Investing

    Zooming In On Net Operating Income

  2. Working Capital Works
    Insurance

    Working Capital Works

  3. What Is A Cash Flow Statement?
    Markets

    What Is A Cash Flow Statement?

  4. Free Cash Flow: Free, But Not Always ...
    Markets

    Free Cash Flow: Free, But Not Always ...

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center