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
insurance policy outline, policy outline, insurance policy illustration, sales 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.
