Yearly Rate Of Return Method
Definition of "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
Flat amount added to the basic premium rate to reflect the cost of issuing a policy, establishing the required records, sending premium notices, and other related expenses. ...
Retirement income benefit of a survivor (or survivors) of an insured individual, according to a particular formula. For example, if a retired male worker dies, all or a portion of his ...
Salaries plus commissions plus overhead expenses plus office rent plus fees charged for memberships in industry associations and bureaus plus guaranty association assessments plus taxes ...
Same as term Mortality Table: chart showing rate of death at each age in terms of number of deaths per thousand. ...
Plan that permits the insurance company to administer health care plans that permit the patient to choose from three benefit options at the time of need: indemnity (insurance), HEALTH ...
Employer's obligation to fund a pension plan for the time period when employees were qualified to participate but the plan was not yet established. For example, a pension plan is ...
Written document containing instructions on managing one's assets during one's lifetime. The document may be revoked (unless made irrevocable at creation), terminated, or amended at any ...
Method of investing that staggers the maturities of a group of bonds. As a bond matures, the investor can reinvest the proceeds in either short- or long-term bonds depending on the interest ...
Insurance under the personal automobile policy (pap) through a named non owner coverage endorsement offering protection for liability, uninsured motorists, and medical payments to a named ...
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