interest adjusted net payment index

Dollar figure derived by the interest-adjusted method used to compare the costs of similar policies. This index indicates the average annual outlay (premium less dividend) for a policy assuming premiums and dividends (if any) are paid as illustrated. The index also assumes the policy is not surrendered and that money is valued at a stated interest rate, , typically five percent. The net cost and net payment indexes for term policies are usually the same because term policies generally have no cash surrender value.