Which term refers to the interest earned on a policy over time?

The term that accurately refers to the interest earned on a policy over time is not "accrued discount," but rather is commonly referred to as "cash accumulation" or "accrued interest" depending on the context of the insurance policy and its structure.

Cash accumulation describes how the value of a policy grows due to the interest that is credited over time. This growth can occur in permanent life insurance policies, where the cash value can increase based on the interest earned on the stored value in the policy. It represents the financial benefit to the policyholder as the policy matures and adds more potential cash for loans or withdrawals.

Accrued interest typically refers to the interest that has accumulated but hasn’t yet been paid out, which could also apply within certain contexts of life insurance policies. However, this can be a misinterpretation in this scenario since the correct focus is on the general growth of the policy’s value due to these earnings.

Overall, cash accumulation is the broader term that encompasses how the policy earns interest over time, contributing to an increase in its total value.