The-definition.com

Definition

Traditional net cost method

Traditional net cost method is a method of determining cost to an insured of a life insurance policy, determined by subtracting the total dividends received and cash value at the end of a period from the total premiums paid during that period. Does not consider the time value of money.

Share it:  Cite

More from this Section

  • Tier 1 Capital
    Tier 1 Capital refers to core capital consisting of Capital, Statutory Reserves, Revenue ...
  • Equity commitment notes
    Equity commitment notes is the type of bank capital in the form of debt securities that ...
  • Operating Exposure
    Operating Exposure, also called economic exposure, competitive exposure, or strategic ...
  • Goodwill
    The largest intangible asset that appears on a company’s balance sheet is goodwill. ...
  • Time series Analysis
    Time series Analysis is an analysis of relationships between two or more variables over ...