What is Yearly Price of Protection Method?
Definition of Yearly Price of Protection method
There is a process in which professionals of insurance industry deal with actuarial sciences, this whole procedure is called yearly price of protection method. This method is used by actuaries specifically for calculating the yearly cost of protection of a cash value life insurance policy. There lies a saving component in these policies.
Explanation of Yearly Price of Protection method
Such method is used where estimates of insurance probability are calculated. In these calculations, the cash value accumulated at the year start is determined by actuaries. And all the premiums in the particular year are added to this calculation.