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The definitions contained herein are for general information only and are not
designed for use in connection with the interpretation of any insurance policy
or annuity policy issued through Insurance Answer Center.
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Life Insurance Glossary Terms 4 A B C D E F G H I J K L M N O P Q R S T U V W Y |
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Liquidity |
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This indicates the ease and speed with which an investment can be converted to cash. For example, a short-term Treasury bill is very liquid, but a real-estate investment (such as selling a building or property) is not as liquid. Liquidity is important to an insurance company since it needs cash to pay policy benefits. Low liquidity can result in losses if a company is forced to sell assets at the wrong time to cover cash outflow. |
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Learn More about Life Insurance
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| Answer Financial(R) Inc. offers insurance products and services through its licensed affiliates Insurance Answer Center(R) Inc. (California License No. 0B99714), Answer Center Insurance Agency, Inc., and other affiliates. Answer Financial is not an insurance company. Insurance plans and services are from insurance companies and other licensed insurance-related providers. Not all products available in all states. Rates subject to change. |
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