Yearly Rate Of Return Method
Actuarial procedure used to determine the annual rate of return at which annual benefits would have to be gained from the cash value life insurance policy in order to equal the annual investment made in the policy. The benefits under the policy are the cash value, dividends (if participating insurance), and the death benefit for the year under discussion. The investment made in the policy is the amount of the premiums paid into the policy that year and the cash value at the beginning of that year.
Popular Insurance Terms
Portion of reinsurance premium received by the reinsurer that relates to the unexpired part of the reinsured policy. ...
Income (premiums + investment earnings) minus disbursements (dividends + death claims + policies surrendered for benefits + general expenses). ...
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Federal agency that collects and analyzes numerous U.S. demographics used by government and industry. Insurance companies use the demographics to predict areas of high demand for their ...
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