Option offered by an insurance company to invest money contractually paid out under a life insurance policy in a fund on behalf of the customer. – The particular advantage here is that the investor can use a withdrawal arrangement to determine the amount and the period over which he wishes to receive payments from the fund. – In contrast to a conventional fund, this allows arrangements to be agreed that are precisely tailored to the particular circumstances of the individual customer. In addition, the insurance company maintains a relationship with the customer. The customer’s financial investment made in this way is usually managed by a capital management company. The insurance company balances out any necessary timing adjustments (date of the fund’s distribution on the one hand and payments agreed with the insurance company in accordance with the negotiated withdrawal plan with the customer on the other) via its own internal (omnibus) account. – See captive fund, guaranteed fund, life insurance policy trade, post-trade, pension fund, pension fund.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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