What is ‘Yearly Price Of Protection Method’
A method used in actuarial analysis, which is often used in the insurance industry. The Yearly Price Of Protection Method is used to find out the cost of protection of a policy that includes a savings component such as a cash value life insurance policy. It relates to computations that involve insurance probability estimates.
Explaining ‘Yearly Price Of Protection Method’
The cost of this protection is based on the cash value at the beginning of the year plus premiums paid for that year. The determined total is multiplied by an assumed interest rate factor of (1+i). The result equals the part of the life insurance premiums paid that can be received if the policy is canceled, in other words, the cash surrender value which only applies to ordinary life and limited policies, not term insurance.
Further Reading
- Cost-effectiveness of aflatoxin control methods: economic incentives – www.tandfonline.com [PDF]
- A short-term cost-effectiveness study comparing robot-assisted laparoscopic and open retropubic radical prostatectomy – www.tandfonline.com [PDF]
- Tourism potentials for financing protected areas – www.sciencedirect.com [PDF]
- Economic burden from health losses due to foodborne illness in the United States – meridian.allenpress.com [PDF]
- Voluntary disclosure in the annual reports of New Zealand companies – onlinelibrary.wiley.com [PDF]
- Harmonization, historical cost and investments – search.proquest.com [PDF]
