What does Commuted Value mean? Read on to discover the definition & meaning of the term Commuted Value - to help you better understand the language used in insurance policies.
Commuted value is the current lump sum payment that would be required to entirely pay out a pension, an annuity or a life insurance policy. Many people choose to receive their benefits from these financial instruments in commuted value lump sum payments, rather than wait many years for the full value to be paid out.
We hope the you have a better understanding of the meaning of Commuted Value.