What is the Definition of Interest-Adjusted Cost Comparison Index?

What is the Definition of Interest-Adjusted Cost Comparison Index?

A cost comparison index used to compare life insurance policy costs that takes into account the time value of money. By comparing the index numbers derived for similar life insurance policies, a consumer has some basis on which to compare the costs of the policies. (See Net payment cost comparison index; Surrender cost comparison index)

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

Label: Insurance
Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Annuity?

What is the Definition of Interest-Adjusted Cost Comparison Index?

What is the Definition of Interest-Adjusted Cost Comparison Index?

You can find random definition and meaning of insurance terms below:


Meaning of Frequency in Insurance Terms

Number of times a loss occurs. One of the criteria used in calculating premium rates.


Meaning of Fronting in Insurance Terms

A procedure in which a primary insurer acts as the insurer of record by issuing a policy, but then passes the entire risk to a reinsurer in exchange for a commission. Often, the fronting insurer is licensed to do business in a state or country where the risk is located, but the reinsurer is not. The reinsurer in this scenario is often a captive or an  independent insurance company that cannot sell insurance directly in a particular country.


Meaning of Futures in Insurance Terms

Agreement to buy a security for a set price at a certain date. Futures contracts usually involve commodities, indexes or financial futures.


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