What Is a Life Assets?

What Is a Life Assets?

What Is a Life Estate? A life estate is property, usually a residence, that an individual owns and may use for the duration of their lifetime. This person, called the life tenant, shares ownership of the property with another person. This person is called the remainderman, and automatically receives the title to the property upon

Life Expectancy Approach Definition

Life Expectancy Approach Definition

What Is the Life Expectancy Method? The life expectancy method is a way of calculating individual retirement account (IRA) distribution payments by dividing the balance or total value of a retirement account by the policyholder’s anticipated length of life. The life expectancy method is the most straightforward method of calculating required minimum distributions (RMDs) for retirement

Level Load Definition

Level Load Definition

What Is a Level Load? A level load is an annual charge deducted from an investor’s mutual fund assets to pay for distribution and marketing costs for as long as the investor holds the fund. For the most part, this fee goes to intermediaries who sell a fund’s shares to the retail public. The level

Degree-Most sensible elegance Insurance policy: Definition, Advantages, Example

Degree-Most sensible elegance Insurance policy: Definition, Advantages, Example

What Is Level-Premium Insurance? Level-premium insurance is a type of permanent or term life insurance where the premium remains the same over the policy’s life. With this type of coverage, premiums are thus guaranteed to remain the same throughout the contract. For a permanent insurance policy like whole life, the amount of coverage provided increases

What Is Financial Leverage, and Why Is It Important?

What Is Financial Leverage, and Why Is It Important?

What Is Financial Leverage? Financial leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment. Leverage