Time value of money

{
  "id": "MLC-T-INS-003336",
  "term": "Time value of money",
  "field": "Insurance and risk management",
  "definition": "The principle that a sum of money is worth more now than the same sum will be at a future date due to its potential earning capacity. This core financial concept is used in insurance to calculate present values of future liabilities, such as claims reserves or annuity payments. It accounts for inflation and the opportunity cost of capital over time.",
  "url": "https://mlchart.com/terminology/insurance/time-value-of-money/"
}