What does Equity mean? Read on to discover the definition & meaning of the term Equity - to help you better understand the language used in insurance policies.
Equity is ownership in a particular thing. Equity commonly comes in the form of securities which are traded on stock exchanges. Stocks are securities that represent a portion of ownership in a company. In the context of insurance, many life insurance policies offer an equity component. This means that if policyholders would like, they can designate a portion of their premiums towards investing in equities.
We hope the you have a better understanding of the meaning of Equity.