Investment Income
What Does Investment Income Mean?
Investment income refers to income generated through investments such as stocks, bonds, dividends, other securities, real estate, and various other forms. In the context of insurance, many life insurance companies offer an investment component within their policies, allowing 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 includes an investment component. This means that, in addition to providing insurance benefits, a portion of the premiums can be allocated 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 can increase. This cash can be withdrawn at a later date or used for other purposes, such as paying additional premiums.
