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Glossary of Terms

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From The Glossary »

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Net Premium Life Business:

The premium which, together with other similar premiums, along with investment income, will be exactly sufficient to pay all claims under certain specific assumptions as to mortality rates and interest yields. It does not provide for any expenses of administration nor for contingencies not contemplated in the basic mortality and interest assumptions. A level net premium is uniform in amount as between first and renewal policy years and hence makes ...
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