1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Life Insurance Cost Index is a tool that assigns a number to your policy based on comparisons with other, similar policies. When I say similar, I mean not just the the type of policy is similar, but you must compare similarities all across the board: health class you qualify for, how long you will be paying the premium, etc.

    The index takes into account the value of your money over time, dividends collected, premiums paid, and cash value accumulated. Generally, lower indexes indicate a better deal.
    Answered on January 20, 2015
  2. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    The cost index that Peggy refers to above here is the Net Payment cost index. There is also a cost index for "surrender value" of a policy. The surrender value of a policy is based on how much premium has been paid, how much cash value has accumulated, and cost of insurance. The surrender value of a policy is paid to the policy holder when they terminate and surrender the policy.
    Answered on May 25, 2015
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