Policy Illustration

Definition

  • The outline used by an agent to show prospective clients how a policy will perform under a multitude of conditions over a number of years. Also known as a "sales illustration."

Synonyms
sales illustration, policy outline, insurance policy outline, insurance policy illustration

Related Terms and Acronyms

  • Actuarial Table Definition,
    • A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.
  • Expense Ratio Definition,
    • A method of calculating an insurer's operating efficiency.
  • Insurance Policy Definition,
    • A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
  • Lapse Ratio Definition,
    • A ratio that compares how many life insurance policies have lapsed from the beginning year to the end.
  • Loss Ratio Definition,
    • A method of comparing an insurer's losses to premiums earned in a specific period of time.
  • Morbidity Rate Definition,
    • A measurement of how prevalent a medical condition or disease is.
  • Mortality Rate Definition,
    • A measurement of how many people in a particular population set and in a particular period of time die.
  • Policy Declarations Definition,
    • The section of the insurance policy that declares the specifics of the insurance policy including premiums, named perils, and policy limits, amongst others.
  • Policyholder Dividend Ratio Definition,
    • A ratio comparing the dividends paid to policyholders to net premiums earned by the insurer.
  • Premium-to-Surplus Ratio Definition,
    • A method used to determine an insurance company's financial stability.
  • Survival Analysis Definition,
    • A statistical analysis of how likely someone or something will survive to a set date.
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