Full Preliminary Term Reserve Plan
Method of valuing a reserve under which a life insurance policy, from an actual point of view, combines one-year term insurance and a one-year deferred plan. Here the net premium is sufficient only to pay first-year death claims. For example, a 10-pay life insurance policy issued at age 30 would be viewed actuarially, for full preliminary term reserve plan purposes, as one-year term insurance at age 30 plus a nine-pay policy issued at age 30 but deferred to age 31.
Popular Insurance Terms
Difference between the yield on earning assets and the cost of interest-bearing liabilities. ...
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Mortality table whose statistics have been adjusted to show expected mortality experience. ...
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Plans that are similar to stock appreciation rights (SARS) in that an employee is granted a contractual right by the employer to a stipulated number of units in the business, which is ...
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