Yearly Rate Of Return Method

Definition of "Yearly rate of return method"

Rosanta  Vallone real estate agent

Written by

Rosanta Valloneelite badge icon

Fletcher Realty Services Inc

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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Largest property and casualty insurance company trade association in the world (international membership)whose objectives include the service of its membership through positive legislation ...

Date of issue of the policy. ...

Payments in excess of the value of the loss a prohibited practice. When an insured has more than one policy covering a risk, the full value cannot be collected from each policy if a loss ...

Excess of loss reinsurance written on a facultative reinsurance basis to provide cover for a particular PRIMARY INSURANCE policy. ...

Fixed or stated amount of interest paid by a security expressed as a percent of the par value of the security. The longer the length of time until maturity, the higher the coupon rate to ...

Base upon which a mortality table is built by beginning with a randomly selected group of people who are alive at the earliest age for which statistics are available on the number of people ...

Inability of the insured to perform any and all important daily duties of that insured's occupation. ...

Same as term Line Limit: maximum amount of a specified type of insurance coverage, according to underwriting guidelines, that an insurance company feels it can safely underwrite on a ...

Coverage for the employer in the event of a tort committed by an employee in the use of his or her own car while conducting business on behalf of the employer. ...

Popular Insurance Questions