Terms about lifelong coverage and policies that build cash value.
An accumulating fund is the savings or investment component of certain permanent life insurance policies, particularly universal life insurance. It represents money that builds up within the policy over time after applicable insurance costs and fees.
Adjusted cost basis (ACB) is the amount used to calculate the taxable gain when a Canadian life insurance policyholder withdraws money, surrenders a policy, or completes certain other transactions involving their policy.
