Straight Line Rule
Definition of "Straight line rule"
Method of depreciating an asset in which its useful life is divided into an appropriate number of years (or other periods), the final salvage value is deducted, and the asset is written off in an equal portion for each period. Depreciation is a business expense for tax purposes. Straight line depreciation is the simplest method, but is not as advantageous to an owner as accelerated depreciation, which allows a company to recover its costs more quickly.
Popular Insurance Terms
Regulation set forth by the national association of insurance commissioners (naic) to govern life insurance sales illustrations. Includes the following major provisions: POLICY OWNER must ...
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Coverage in which premiums are collected monthly on an ordinary life insurance policy. ...
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Classification of occupations according to the degree of risk inherent in that occupation. ...
Analysis of uncertainty of financial loss. This classification can be according to whether a risk is fundamental, particular, pure, speculative, dynamic, or static. In life insurance the ...
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Benefits payable under any insurance policy or annuity contract. ...
Plan under which life insurance is substituted for retirement income. Under the plan, a married individual selects a single life annuity payout from the pension plan, which will generate ...
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