What does Dollar Cost Averaging mean? Read on to discover the definition & meaning of the term Dollar Cost Averaging - to help you better understand the language used in insurance policies.
Dollar Cost Averaging
Dollar cost averaging is an investment method where the investor purchases a set dollar amount of a specific investment vehicle at regular intervals over a course of longer period. It is a way to offset the unpredictable nature of the market, which may rise or fall at any time. In the context of insurance, many life insurance policies offer an investment component, and dollar cost averaging is one way insurers make these investments.
We hope the you have a better understanding of the meaning of Dollar Cost Averaging.