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Accelerated Option

What is 'Accelerated Option'

This term refers to an option in an insurance contract, usually in the form of a rider, that allows for accelerated benefits or partial benefits sooner than they would otherwise be payable. Alternatively, in life insurance contracts, an accelerated option can refer to the option that allows the policy holder to apply the accumulated cash value to pay off the policy.

Explaining 'Accelerated Option'

One form of an accelerated option is the accelerated death benefit rider in a whole life insurance policy. The terms and conditions of receiving the benefits are outlined in advance, and almost always include a provision for benefits if the policyholder becomes terminally ill. Another form is the option to use the cash value of the policy to prepay the remaining balance of premiums due in a lump sum payment.


Further Reading


The accelerated binomial option pricing model
www.jstor.org [PDF]
… The only previous attempt to investigate the application of convergence acceleration techniques to the … Whereas we have shown how to accelerate the convergence of a particula binomial model with … Thus, the accelerated binomial can be used to value all the variety of options …

Managerial short-termism and investment: Evidence from accelerated option vestingManagerial short-termism and investment: Evidence from accelerated option vesting
academic.oup.com [PDF]
… The only previous attempt to investigate the application of convergence acceleration techniques to the … Whereas we have shown how to accelerate the convergence of a particula binomial model with … Thus, the accelerated binomial can be used to value all the variety of options …

Accelerated simulation for pricing Asian optionsAccelerated simulation for pricing Asian options
ieeexplore.ieee.org [PDF]
… The only previous attempt to investigate the application of convergence acceleration techniques to the … Whereas we have shown how to accelerate the convergence of a particula binomial model with … Thus, the accelerated binomial can be used to value all the variety of options …

Not all buybacks are created equal: The case of accelerated stock repurchasesNot all buybacks are created equal: The case of accelerated stock repurchases
www.tandfonline.com [PDF]
… The only previous attempt to investigate the application of convergence acceleration techniques to the … Whereas we have shown how to accelerate the convergence of a particula binomial model with … Thus, the accelerated binomial can be used to value all the variety of options …

Underwriting 1.5 C: competitive approaches to financing accelerated climate change mitigationUnderwriting 1.5 C: competitive approaches to financing accelerated climate change mitigation
www.tandfonline.com [PDF]
… The only previous attempt to investigate the application of convergence acceleration techniques to the … Whereas we have shown how to accelerate the convergence of a particula binomial model with … Thus, the accelerated binomial can be used to value all the variety of options …

Do efficient banking sectors accelerate economic growth in transition countriesDo efficient banking sectors accelerate economic growth in transition countries
papers.ssrn.com [PDF]
… The only previous attempt to investigate the application of convergence acceleration techniques to the … Whereas we have shown how to accelerate the convergence of a particula binomial model with … Thus, the accelerated binomial can be used to value all the variety of options …

A new economic instrument for financing accelerated landfill aftercareA new economic instrument for financing accelerated landfill aftercare
www.sciencedirect.com [PDF]
… The only previous attempt to investigate the application of convergence acceleration techniques to the … Whereas we have shown how to accelerate the convergence of a particula binomial model with … Thus, the accelerated binomial can be used to value all the variety of options …

Accelerated share repurchasesAccelerated share repurchases
www.sciencedirect.com [PDF]
… The only previous attempt to investigate the application of convergence acceleration techniques to the … Whereas we have shown how to accelerate the convergence of a particula binomial model with … Thus, the accelerated binomial can be used to value all the variety of options …

The retention effects of unvested equity: Evidence from accelerated option vestingThe retention effects of unvested equity: Evidence from accelerated option vesting
academic.oup.com [PDF]
… The only previous attempt to investigate the application of convergence acceleration techniques to the … Whereas we have shown how to accelerate the convergence of a particula binomial model with … Thus, the accelerated binomial can be used to value all the variety of options …



Q&A About Accelerated Option


How does an accelerated option work?

An accelerated option works by allowing the policyholder to use their cash value to pay off their premium balance due.

How does accelerator theory work?

Accelerator theory was developed by "Thomas Nixon Carver" and "Albert Aftalion". Still Keynesian economics became more famous than this theory during its time period due to its focus on demand control through price control rather than supply control through production control like accelerator theory's focus on production control through production increases or decreases depending on whether there is too much or too little demand for products at current prices respectively."

What is the acceleration effect?

The acceleration effect is defined as the positive effect of market economic growth on private fixed investment, for example, compared with the total change in domestic output. More GDP makes society more prosperous as businesses see profits rise. This change manifests itself in an increase in sales and earnings that now maximizes the benefits of capacity. This usually manifests itself in desirable profits and an increase in the profits of the business. It also entices firms to build more factories and other buildings, spending known as fixed investment. In addition, it will attract more customers to consume, which is called the multiplier effect in economics. This change has an excellent improvement to the social economy.

What does the term "accelerated death benefit" mean?

The term "accelerated death benefit" means the policyholder can receive the death benefit in advance if they become terminally ill.

What does each company have specific strategies that aim to maximize?

Each company has specific strategies that aim to maximize money available(Yu Sandy,22). sup id="citeref-1" class="reference" a href="citenote-1" &91;1&93; a sup

What is an accelerated option?

An accelerated option is a rider that allows for accelerated benefits or partial benefits sooner than they would otherwise be payable.

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