google bot detected Internal Rate Of Return | Insurance Glossary | Realestateagent.com

Internal Rate Of Return


Definition of "Internal rate of return"

Georgia Curie
  Cherry Creek Properties LLC

Method used to determine the policyholder's return on premiums paid into a life insurance policy. This method is illustrated in two ways:

  1. .Surrender of Policy Approach calculation of the interest rate required for the accumulated value of the total premiums paid(minus any DIVIDENDS) into the policy at a given time to equal the CASH SURRENDER VALUE of the policy at that time;
  2. DEATH BENEFIT Paid Approach calculation of the interest rate required for the accumulated value of the total premiums paid(minus any dividends) into the policy at a given time to equal the death benefit of the policy at that time.



Related Real Estate Glossary terms

Related Real Estate FAQ