Yield Rate
Definition of "Yield rate"
Same as term Yield on Assets: annual or other periodic rate of return on investments. Because life insurance companies act as custodians of premiums for many years, until money must be paid out in death benefits or other types of claims, they invest it to achieve a yield adequate to meet these obligations. Yield is also important to the policy owner of life policies that include a specific investment element. For example, some annuities and cash value life insurance policies pay a yield that approximates the market rate the policyholder could get elsewhere. While other contracts, such as a variable annuity and variable life insurance do not guarantee a specified yield, they pay one based on the performance of the underlying investments.
Popular Insurance Terms
To which the original investment sums build at a stipulated interest rate. ...
Compilation that reports the number of new incorporated and nonincorporated businesses started during a single week. ...
Earned premium minus incurred losses plus loss adjustment expense plus other incurred underwriting expenses plus policy owner dividends. This income is generated from the insurance business ...
Written form which has precisely the same terms as the other property insurance policies covering a particular property. ...
Life insurance policy provision under which the policyholder may apply the accumulated cash value, in the form of a single premium payment, to pay up the policy or to mature the policy as ...
Possibility of loss associated with water transportation, including hull damage or destruction, cargo damage or destruction, liability to others for bodily injury, and property damage or ...
Annual meetings of insurance practitioners and academicians from throughout the world interested in exchanging ideas concerning the theory and applications of insurance. The meeting is held ...
Business liability for bodily injury or property damage resulting from operations of the business. Business firms can buy insurance for this risk with a variety of liability policies, ...
In automobile insurance, coverage providing protection in the event of physical damage to the insured's own automobile (other than that covered under comprehensive insurance) resulting from ...
Have a question or comment?
We're here to help.