What does Capital Gains mean? Read on to discover the definition & meaning of the term Capital Gains - to help you better understand the language used in insurance policies.
Capital gains refer to the profit received from the sale of a capital asset, such as bonds, stocks, or real estate, wherein the sale price exceeds the purchase price. The difference equals the amount of capital gains. In terms of insurance, cash value and death benefits from life insurance policies do not count; however, the proceeds from a sale of a policy to another person would.
We hope the you have a better understanding of the meaning of Capital Gains.