term life insurance - interest adjusted net cost index

interest adjusted net cost index

Dollar figure derived by the interest-adjusted method used to compare the costs of similar policies. The index gives the average annual cost of a life insurance policy assuming the premiums and dividends (if any) are paid as illustrated . The index also assumes the policy is surrendered at the end of the stated time period and that money is valued at some stated interest rate, typically five percent. Also called the surrender cost index.

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