Definition - What does Investment Income mean?
Investment income is income that is generated through investments such as stocks, bonds, dividends, other securities, real estate, and other forms of investment. In the context of insurance, many life insurance companies offer an investment component to their policies. Such options allow policyholders to grow the cash value of their policy over time.
Insuranceopedia explains Investment Income
Universal life insurance is a type of life insurance that often offers an investment component to insurance policies. This means that in addition to going towards insurance benefits, money from premiums can go to investments such as stocks, bonds, and mutual funds. Over time, as more money is added to the investment portion of the policy, the cash value of the policy can increase. This cash can be taken out at a later date, or used for other purposes, such as to pay more premiums.
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