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Savings element
Savings elementUsed in the context of life insurance, the cash value built up in a policy, which equals the amount of premium paid minus the cost of protection. RELATED TERMS-------------------------------------- Insurance A contract in which payment of premiums covers the insured against something which may, or may not occur. Cash The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and banker's acceptances. Value The worth or desirability of something expressed as an amount of money. Policy Contract by which the insurer agrees to pay the insured a certain sum of money if or when certain stated events happen; plans determining a government or firm's actions. Premium The money paid by the insured to the insurer in return for insurance cover or benefits payable; the positive difference between the current price of a security and its par value. Minus The symbol (-) that precedes the change figure in a stock table to indicate a closing sale lower than that of the previous day. Cost The opposite of revenue. An expense that reflects the price of purchasing goods, services and financial instruments. A cash cost means that cash is given up today to the purchase. Also, the purchase price of an investment, which is compared to the sale proceeds to determine capital gain or loss. SIMILAR TERMS-------------------------------------- Savings According to Keynesian economics, the amount left over when the cost of a person's consumer expenditure is subtracted from the amount of disposable income that he or she earns in a given period of time. Savings account A deposit account intended for funds that are expected to stay in for the short term. Savings and Loan Association The nearest American equivalent to the British building societies. Savings Association Insurance Fund (SAIF) A government organization that replaced the Federal Savings and Loan Insurance Corporation as the provider of deposit insurance for thrift institutions. Savings bank An institution that primarily accepts consumer savings deposits and to make home mortgage loans. Savings bond A government bond issued in face value denominations from $50 to $10,000, with local and state tax-free interest and semiannually adjusted interest rates. Savings deposits Accounts that pay interest, typically at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand. Savings function A Keynesian term relating the level of saving and the level of income. Savings Incentive Match Plan for Employees (SIMPLE) 401(k) plan A tax-deferred retirement savings plan similar to a conventional 401(k) plan, redesigned with specific rules to meet the needs of small employers. The Small Business Job Protection Act of 1996 created these plans for companies with fewer than 100 employees. Savings rate Personal savings as a percentage of disposable personal income. Savir 2000 de Inversiones, SICAV, S.A. Savir 2000 de Inversiones, SICAV, S.A. is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment. Savir Patrimonio, SICAV, S.A. Savir Patrimonio, SICAV, S.A. is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment. PREVIOUS AND NEXT TERMS-------------------------------------- Savings and Loan Association The nearest American equivalent to the British building societies. Savings Association Insurance Fund (SAIF) A government organization that replaced the Federal Savings and Loan Insurance Corporation as the provider of deposit insurance for thrift institutions. Savings bank An institution that primarily accepts consumer savings deposits and to make home mortgage loans. Savings bond A government bond issued in face value denominations from $50 to $10,000, with local and state tax-free interest and semiannually adjusted interest rates. Savings deposits Accounts that pay interest, typically at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand. Savings element Savings function A Keynesian term relating the level of saving and the level of income. Savings Incentive Match Plan for Employees (SIMPLE) 401(k) plan A tax-deferred retirement savings plan similar to a conventional 401(k) plan, redesigned with specific rules to meet the needs of small employers. The Small Business Job Protection Act of 1996 created these plans for companies with fewer than 100 employees. Savings rate Personal savings as a percentage of disposable personal income. Scale Payment of different rates of interest on CDs of varying maturities. A bank is said to "post a scale." Commercial paper dealers also post scales. Scale enhancing Describes a project that is in the same risk class as the whole firm. That is, the project allows the firm to grow larger in the context of their current business rather than diversify into new businesses. We thank you for using the Financial Dictionary to search for Savings element. If you have a better definition for Savings element than the one presented here, please let us know by making use of the suggest a term option. This definition of Savings element may be disputed by other professionals. Our attempt is to provide easy definitions on Savings element and any other medical topic for the public at large.
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