Internal Rate Of Return


Definition of "Internal rate of return"

Georgia Curie real estate agent
Georgia Curie, Real Estate Agent 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.

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