Accelerative Endowment - Definition
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Accelerative Endowment Definition
An endowment policy is a life insurance contract or policy that enables an insured individual to have entitlement to the payment of a lump sum of money after the policy matures. An accelerative endowment is an insurance option used in a whole life insurance policy, this is an option that allows dividends to accumulate before they are later converted into an endowment policy. Once these dividends are allowed to accumulate, they are released to an insured person as a lump-sum payment at a certain time, usually before the normal maturity date of the policy.
A Little More on What is Accelerative Endowment
The term accelerated means increased speed. This term as used in accelerative endowment means that a policyholder would receive the payment of an endowment policy at an earlier date than the maturity date of the policy. Dividend accumulations in a whole life insurance policy are converted into an endowment policy which a policyholder receives before the maturity date. An accelerative endowment is an insurance policy that enables the insured collect payment of the policy before the set date, this is usually before the death of the insured. Usually, payments for whole life insurance policies are meant to be made after the death of a policyholder, accelerative endowment, when used, allows the policyholder receive accumulated payment before his death.
Accelerative Endowment vs. Whole Life Insurance
Whole life insurance policies provide coverage for the death of the policyholder, these policies come with death benefits that are paid in full when the insured passes on. However, in the case of an acceleration endowment, it is an insurance option used in whole life insurance that allows a holder receive insurance benefits and payment before death or maturity date. This entails that the payment of dividends that the insured has accumulated over a period of time are converted into an endowment policy and paid to the insured before the initial time of payment. The accumulated dividends are paid in cash value or as a lum-sum of money to the insured.
Reference for Accelerative Endowment
Academics research on Accelerative Endowment"
Study on Establishment of the Service System for the Old in An Aged Society [J], Ji-yuan, L. E. I. (2009). Journal of Xiangfan University, 9. The aged society is characterized by a significant portion of aged people with stronger pressure of aging problems, more empty homes with lonely people among other issues. This paper studies the establishment of the service system for the aged ones in an old society.Dictionary of Insurance TermsBarron's Business Guides, Rubin, H. W. (2000). Dictionary of Insurance TermsBarron's Business Guides.The trend of China's rural ageing problem and its solution, Wu, Y., & Milne, D. (2018). A significant demographic trend in China is an aging population. Because of the one-child policy, the aging population increases concerning the national population. This paper proposes countermeasures for rural aging by designing a holistic policy to provide the aging population with a sense of security, worthiness, and inclusion.The Dilemma of Chinese Insurance Fund and the Countermeasure of Throwing it off, Chong-zheng, X. U. (2003). Journal of Nanjing Normal University (Social Science Edition), (5), 4. The focus of this paper is the Chinese insurance status, and the crisis is facing.Impacts of e-commerce and enhanced information endowments on financial services: A quantitative analysis of transparency, differential pricing, and , Clemons, E. K., Hitt, L. M., Gu, B., Thatcher, M. E., & Weber, B. W. (2002). Journal of Financial Services Research, 22(1-2), 73-90. The lapses of the e-Commerce financial services firms are becoming more glaring. It has become a herculean task to manipulate the behavior of customers as the web presently drives openness and enhances the information base of every market player. Differential pricing is driven by transparency. Not all customers are supposed to be charged the same prices. The viability of cross-subsidies between customers is being reduced by transparency. The differential pricing made possible by the internet overhauls the channels of distributions and facilitates direct selling and other forms of distribution such as referral marketing.