Adjusted Premium
Definition of "Adjusted premium"
Premium that equals the net level premium plus the modification of the net level premium to reflect the cost associated with paying for the first year initial acquisition expenses. The modification is derived by dividing the first year initial acquisition expenses by the present value of a life annuity due (thereby amortizing these expenses over the premium paying period). This is the premium used to generate a minimum cash surrender value required by the NON FORFEITURE PROVISION.
Popular Insurance Terms
Tax-exempt income that, for comparative purposes, has been increased by an amount equal to the taxes that would be paid if this income were fully taxable at statutory rates. ...
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Single payment or periodic payments that are made to purchase an annuity. ...
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